Description
Documentation about brand management of victor plus. It covers topics like SWOT, Problems faced, brand objectives , Marketing Objective, Break even calculation, promotion, advertising with perceptual maps
Victor Plus
Brand Management
1. SWOT analysis of Victor Plus. Strengths ? Bargaining power with farmers ? Price advantage over competitors ? Low fixed cost ? Higher retailer margin ? Reputed consultant ? ED (Marketing) with rich experience ? ? ? ? ? ? Weaknesses Tiny player Inconsistency in positioning Lower retail penetration No presence in A+ outlets Lesser focus on brand building Present machinery constraints for addition of ingredients like malt and milk solids Threats Lesser score given by consumer on nutrition, packaging and brand name Not considered a national brand Not placed in the consideration set Low brand appeal and visibility Inadequate marketing expenditure
? ? ? ? ? ? ?
Opportunities Huge market potential High production capacity Market for drinking chocolates Product variant for institutional segment Low brand loyalty of milk beverages (except Horlicks and Bournvita) Positive evaluation of taste Cost advantage
? ? ? ? ?
2. Problems faced by Victor Plus The most important problem faced by Victor Plus is the lower than expected sales for Victor Plus. Considering the 4 Ps, the place and promotional aspects have not been given the emphasis that they deserve. The lower retail penetration compared to its competitors is a major issue. Added to this, the retailers? perception of Victor Plus is not encouraging. Though the margins for retailers are higher, they are not keen on placing Victor Plus in their shelf because they feel that the product lacks brand appeal and visibility. Though the milk beverages are majorly consumed by high income households, the product does not have presence in A+ outlets. To reach the customers, the promotional media used the company is inadequate. Television medium was not considered inspite of the fact that advertising in this medium is a major step towards brand building. Also the percentage of marketing expenditure for Victor Plus was lower, when compared with the different competitors. 3. The brand objectives and marketing objectives for victor plus should be as follows: ? Connect with your target audience emotionally: We can clearly establish from the case that though the company has positioned itself as “The nutritious and tasty coco drink with milk” it has not been able to get across this in the minds of the customer clearly. Moreover it also has a clear price advantage which it has not been able to leverage on.
Hence the primary objective of the brand would be to connect emotionally with its target audience. Since our target consumers is mainly constituted in the age group of 6-16 yrs and the mother of the consumers are the decision makers or buyers, an emotional connect with them that we care for the child?s nutrition and health will ensure that they purchase our brand and also stay with us. ? Establish Credibility: The next brand objective after we have connected emotionally with the buyer segment is that to establish our credibility in the market which ensures a) The buyers doesn?t switch brand easily and we get a loyal set of consumers for Victor Plus. b) The credibility factor will help us in charging a premium price in the long run if not immediately. c) This also helps in improving the market share in the sense that if satisfied users who believe in our credibility spread the news around it acts as word of mouth marketing for us. In the process of establishing credibility the brand manager should look at maintaining consistent quality, delivering the product on time and etc. He can also look at taking some kind of an external certification for the product.
Marketing Objective: Increase Sales volume/Market share: The primary marketing objective of company should be sales volume increase mainly because of two reasons ? ? Company selling below breakeven (see Table 1 below for break even calculations) The company has a very low market share in spite of being distributed in many states and as much as 25000 retail outlets. The Current market share of Victor is (250/90000)*100=.27% which is very negligible. This is also the reason why the company is not able to leverage on its low price.
The other marketing objectives could be ? ? ? To improve the customer base by better promotions and well planned advertising To increase profitability of the brand by going for cost cutting and efficient operations. Increase the quantity of consumption among existing users.
4. Sales Target for the company for the year 2001 & Break even point
Table 1: Table Showing Break even calculation for Victor Plus. Particulars Fixed Cost HO Fixed Cost ASO TOTAL Fixed cost for the company Fixed Cost allocated to VICTOR PLUS (20%) Advertising cost for victor plus Total fixed cost of Victor Plus Selling price/MRP (7.28/.16=4.55;45.5/.65=70) Variable Cost (Materials,Bottle,Label,Excise and Commissions) Contribution(SP-VC) BEP in 500 Grams Bottle BEP in tones Amount 492.87 156.29 649.16 129.832 30 159.832 70 51.38 18.62 858388.8 429
Now that we have the Break even sales for Victor plus we need to decide on the target that needs to be set for the coming year. Forecasted sales Current sales Sales Gap Break even sales Thus the Revised Sales Gap 180 tonnes 500 tonnes 250 tonnes 250 tonnes 430 tonnes
The company though wishes to sell 500 tonnes it has a very low market penetration level/Market share Current market share (250/90000)*100=.27% Thus company should look at breaking even i.e. to achieve a sales of 430 tonnes at least.
5. Modification of attributes, benefits and positioning strategy of Victor Plus. In the beginning, the product Victor Plus must be clearly positioned in a particular category to shape out an image for itself. It should be in the consideration set of the customers wanting to buy a drink for a particular purpose. We need to position Victor Plus mainly on its digestive, immunity and its repairing capability. We also need to mention about nourishment, energy providing attributes and taste of the product. Most of the competing brands of Victor Plus have primarily positioned themselves on the nourishment and energy factors. Therefore, taste and energy will serve as the hygiene factors. Providing benefits like digestion and immunity will serve as the motivational factors to buy this brand. The low price of the brand should also be of advantage to the brand but it shouldn`t be used as a positioning statement. The customers can perceive the low price as signifying low quality. Victor Plus should give emphasis to its taste and purity of its cocoa, taking the customer right to its source of plantation. This fact could be projected in an interesting way to create a differentiating factor in the minds of the target customers. The product Victor Plus should have increased nutritional content to provide benefits like proper digestion, high immunity and reparability to the customers. Moreover, the brand should focus on its high taste factor. The packaging and design of the product should also be improved. Heavy brand building activities needs to be undertaken. An attractive jingle can also be developed for promoting the new packaging. BENEFITS: The primary benefit of Victor Plus should be understood as satisfying hunger and providing nutrition to act as a beverage. The secondary benefits can be understood as good taste, helping in building immunity, aiding digestion and high repairing capacity. The functional benefit is to satisfy hunger, providing nutrition, helping in building immunity, aiding digestion and high repairing capacity. 6. Perceptual Maps The arrows represent the position of Victor plus Brand in each chart
1. Price vs. Taste (Victor Plus has an advantage of its taste over most other competitors, but is perceived to be highly priced)
4.5 4 3.5 3 2.5 2 2 2.5 3 Price 3.5 4 Series1
2. Price vs. Nutrition (Victor Plus is perceived to be low in nutrition but highly priced by customers)
4.5 4 Nutrition 3.5 3 2.5 2 2 2.5 3 Price 3.5 4
Taste
3. Nutrition vs. Brand name (Victor plus is perceived to be inferior in terms of Nutrition and Brand name by customers)
5 4.5 Brand Name 4 3.5 3 2.5 2 2 2.5 3 Nutrition 3.5 4 4.5
4. Price Vs. Brand name (Victor plus is perceived to be priced high by customers and its brand name is not famous)
5 4.5 Brandname 4 3.5 3 2.5 2 2 2.5 3 Price 3.5 4 Series1
5. Brand name vs. packaging (Victor Plus is perceived to be inferior in terms of its brand name and packaging with respect to its competitors)
4.5 4 Packaging 3.5 3 2.5 2 2 2.5 3 3.5 Brandname 4 4.5 5
7. New design of package ? The company should revamp its product packaging and redesign the labeling to give it a more modern and contemporary look. The way the existing package looks not pleasing for children who are the prime targets for a product like Victor plus. Most major players such as Horlicks, Bournvita, Complan, and Boost are all available in 200gm and 500gm packs. They are also available in refill packs. This is an area unexplored by VCIL. It could provide the same sizes as offered by other players and smaller packs of 100gm for trial purposes and 1000gm for loyalists with substantial price benefit. Given the fact that this segment is price-sensitive, institutions should be serviced by the distributor of the company directly. Thus, there is further cost saving and the product can be sold to the restaurants at a determined. In due course, VCIL can consider 1 kilo pouch packing that will save packing costs further. The packaging can have several changes like the wrapper being associated with one significant colour say, Orange. This is because any chocolate drink is associated with a colour eg. Horlicks being blue, Complan being brown, Boost being red and Milo being green etc. So it will be better if Victor also is expressed in Orange. The front side of the bottle will have “Victor Plus” written in Dark brown colour symbolizing Chocolate flavour with a small cow image on the center left showing the purity of milk, then a flow of milk falling from the name into cup of Chocolate flavoured milk. This will explain why it is important to have the consumer connected with the fact that it is a chocolate drink.
?
?
?
?
The back side of the bottle would have a cat symbolizing the taste of milk with random shaped text box highlighting the words “Super taste” which might serve the purpose of consumer attraction. Also the left and right sides of the bottle can explain “Richer Taste Instant make” and “Hot cocoa served to taste”. These kind of words will attract customers towards their product. But all should be in a background of Orange colour as consumers should associate Victor Plus with orange colour. 8. Promotion and advertising budget for Victor Plus and description of a new print advertisement. ? The company?s The advertisement budget of Rs 30 lakhs in 2000 works out to 2.6 per cent of its sales turnover from chocolates and Victor Plus. This is far below the advertisement spending of other players like Complan, Horlicks etc. Being a new player attempting to develop a new segment, VCIL should be prepared to invest around 10 per cent of its expected turnover of the brand in advertising and promotion. ? The advertising in newspapers that too in regional ones do not suffice the purpose of fetching yields because the children and housewives who read newspapers are very minimal. Also advertising in last page is not significant because generally last page has sports news which is rarely read by women and children. And if it is spread over a long period of time, it has virtually no impact. ? The choice of newspapers as the medium for advertising of Victor Plus needs reconsideration. The readership of newspaper among women in our country is very low, whereas the decision-maker for purchase of health beverages in households is the mother. Therefore, the product can be effectively advertised in regional and women oriented magazines such as weeklies and fortnightlies, which are read widely among women under discussion. ? In fact, VCIL has wasted resources because of prolonged advertising which is ineffective. At the end of the day, VCIL is selling a food product, where taste matters. Taste can be exhibited only by showing the visual pleasure which can be done by concentrating on TV advertisements. The investment in production of a commercial is essential. A commercial which can be aired on regional channels or on local cable networks which is cost effective. ? It gives immense opening and will also help to kick start the operation. Currently, the promotion campaign and the advertisements are focused on children alone. It could augur well for the company to realize that other segments are also prospective markets. The company should leverage its brand image by various brand-building programmes. Awareness and loyalty programmes should be initiated at the school level itself. For instance, events like an intra-district sports meet could be organized to back its claim “the tasty cocoa-based health drink.”
The print ad can be one in which the ad depicts the united family as the major pictorial part. This ensures that consumers feel attached to the ad. In that it can be depicted with say some health oriented facts like 60% carbohydrates, 70% proteins, 30% fat and 90% vitamins are required for a healthy family. The statements like “Start your day with Victor Plus Spend your day with all the nutrients” can be line at the bottom of the ad. This would help us in associating the advertisement with Victor plus that it is for the health of the family and it is a family drink. 9. Promotion strategy At present Victor Plus is getting the needed shelf space among the retailers. One of the main reason for this is retailers just get very less margin on Victor Plus. Victor Plus = 12% of Rs 70 = Rs. 8.4 Other Brands = 10% of Rs. 97 (assumed average price) = Rs. 9.7 The retailer gets an additional Rs. 1.3 for every other brand sold when compared to Victor Plus. The margin on Victor Plus has to be increased; they can give a commission of 13%. This would come to Rs 11.7 for the retailer on 500 gram bottle. It is almost 2 rupees extra than the other brand. This additional margin is needed to make the retailer push your product in the market as other brands are established ones and has a very strong demand. Also, the distributor and super-stockiest commission have to be increased, at present it is just 6% for both of them. Other competing brands in the market are giving a commission of 8%. To successfully push Victor Plus in the channel all the channel members will have to given a higher commission compared to other players. This implies that Victor Plus should also give around 8% commission to both super-stockiest and distributor. To make it more attractive to customers they could also think of having a premium along with the 500 gram bottle. The premium should be attractive and useful to housewife/women as they are the decision maker while purchasing this product. Also, it should be noted that this promotion through premium should be for a short duration of time, probably just for six months. 10. Pricing strategy The current price of Victor Plus is Rs. 70 per 500 gram bottle. This is very less than the current market average Rs. 97.1 for 500 gram bottle. If we look at Table 6 it can be observed that Victor has got second highest rating in „Taste? and „Easy to Mix? parameter. It should try to leverage on this and sell at a higher price in the market. It should also focus on packaging which currently is lowest amongst all the brands. The new packaging should be attractive and should focus more on the nutrition content. This would help Victor Plus gain the necessary attention among customers. The customers should get the feeling that it is a premium product from the looks of the packaging. Thus, Victor Plus would be able to command higher price from the product. They should aim at keeping the price in the range of Rs 90 to 95 for a 500 gram bottle.
11. Introduction of New Variant for Institutional segment The institutional segments include Hotels, Restaurants and other food outlets where people come and have their preferred food. In such segments customers generally prefer taste over other factors namely Metabolism, energy, Immunity and growth of tissues. In these segments Victor Plus can create a variant that has a better taste than other competing milk beverages. Some ingredients that are especially used for improving the health factor of the beverage can be compromised for better taste so that the manufacturing cost of the product doesn?t increase by a huge number. Ingredients such as Sugar, Salt, Cocoa, Sodium Bicarbonate, Caramel Glucose/Sucrose and additional flavours must be added which improve the taste of the product. Moreover ingredients which facilitate the solubility of the product with hot and cold milk must also be added so that Victor plus can be served both as a hot as well as a cold chocolate drink. This new product can also be packed in a sachet or small packet so that the proportion of the product is uniform when mixed with a certain predetermined quantity of milk. This would ensure that the taste of the drink is standardised and will reduce the element of human error in these institutions.
doc_636858233.docx
Documentation about brand management of victor plus. It covers topics like SWOT, Problems faced, brand objectives , Marketing Objective, Break even calculation, promotion, advertising with perceptual maps
Victor Plus
Brand Management
1. SWOT analysis of Victor Plus. Strengths ? Bargaining power with farmers ? Price advantage over competitors ? Low fixed cost ? Higher retailer margin ? Reputed consultant ? ED (Marketing) with rich experience ? ? ? ? ? ? Weaknesses Tiny player Inconsistency in positioning Lower retail penetration No presence in A+ outlets Lesser focus on brand building Present machinery constraints for addition of ingredients like malt and milk solids Threats Lesser score given by consumer on nutrition, packaging and brand name Not considered a national brand Not placed in the consideration set Low brand appeal and visibility Inadequate marketing expenditure
? ? ? ? ? ? ?
Opportunities Huge market potential High production capacity Market for drinking chocolates Product variant for institutional segment Low brand loyalty of milk beverages (except Horlicks and Bournvita) Positive evaluation of taste Cost advantage
? ? ? ? ?
2. Problems faced by Victor Plus The most important problem faced by Victor Plus is the lower than expected sales for Victor Plus. Considering the 4 Ps, the place and promotional aspects have not been given the emphasis that they deserve. The lower retail penetration compared to its competitors is a major issue. Added to this, the retailers? perception of Victor Plus is not encouraging. Though the margins for retailers are higher, they are not keen on placing Victor Plus in their shelf because they feel that the product lacks brand appeal and visibility. Though the milk beverages are majorly consumed by high income households, the product does not have presence in A+ outlets. To reach the customers, the promotional media used the company is inadequate. Television medium was not considered inspite of the fact that advertising in this medium is a major step towards brand building. Also the percentage of marketing expenditure for Victor Plus was lower, when compared with the different competitors. 3. The brand objectives and marketing objectives for victor plus should be as follows: ? Connect with your target audience emotionally: We can clearly establish from the case that though the company has positioned itself as “The nutritious and tasty coco drink with milk” it has not been able to get across this in the minds of the customer clearly. Moreover it also has a clear price advantage which it has not been able to leverage on.
Hence the primary objective of the brand would be to connect emotionally with its target audience. Since our target consumers is mainly constituted in the age group of 6-16 yrs and the mother of the consumers are the decision makers or buyers, an emotional connect with them that we care for the child?s nutrition and health will ensure that they purchase our brand and also stay with us. ? Establish Credibility: The next brand objective after we have connected emotionally with the buyer segment is that to establish our credibility in the market which ensures a) The buyers doesn?t switch brand easily and we get a loyal set of consumers for Victor Plus. b) The credibility factor will help us in charging a premium price in the long run if not immediately. c) This also helps in improving the market share in the sense that if satisfied users who believe in our credibility spread the news around it acts as word of mouth marketing for us. In the process of establishing credibility the brand manager should look at maintaining consistent quality, delivering the product on time and etc. He can also look at taking some kind of an external certification for the product.
Marketing Objective: Increase Sales volume/Market share: The primary marketing objective of company should be sales volume increase mainly because of two reasons ? ? Company selling below breakeven (see Table 1 below for break even calculations) The company has a very low market share in spite of being distributed in many states and as much as 25000 retail outlets. The Current market share of Victor is (250/90000)*100=.27% which is very negligible. This is also the reason why the company is not able to leverage on its low price.
The other marketing objectives could be ? ? ? To improve the customer base by better promotions and well planned advertising To increase profitability of the brand by going for cost cutting and efficient operations. Increase the quantity of consumption among existing users.
4. Sales Target for the company for the year 2001 & Break even point
Table 1: Table Showing Break even calculation for Victor Plus. Particulars Fixed Cost HO Fixed Cost ASO TOTAL Fixed cost for the company Fixed Cost allocated to VICTOR PLUS (20%) Advertising cost for victor plus Total fixed cost of Victor Plus Selling price/MRP (7.28/.16=4.55;45.5/.65=70) Variable Cost (Materials,Bottle,Label,Excise and Commissions) Contribution(SP-VC) BEP in 500 Grams Bottle BEP in tones Amount 492.87 156.29 649.16 129.832 30 159.832 70 51.38 18.62 858388.8 429
Now that we have the Break even sales for Victor plus we need to decide on the target that needs to be set for the coming year. Forecasted sales Current sales Sales Gap Break even sales Thus the Revised Sales Gap 180 tonnes 500 tonnes 250 tonnes 250 tonnes 430 tonnes
The company though wishes to sell 500 tonnes it has a very low market penetration level/Market share Current market share (250/90000)*100=.27% Thus company should look at breaking even i.e. to achieve a sales of 430 tonnes at least.
5. Modification of attributes, benefits and positioning strategy of Victor Plus. In the beginning, the product Victor Plus must be clearly positioned in a particular category to shape out an image for itself. It should be in the consideration set of the customers wanting to buy a drink for a particular purpose. We need to position Victor Plus mainly on its digestive, immunity and its repairing capability. We also need to mention about nourishment, energy providing attributes and taste of the product. Most of the competing brands of Victor Plus have primarily positioned themselves on the nourishment and energy factors. Therefore, taste and energy will serve as the hygiene factors. Providing benefits like digestion and immunity will serve as the motivational factors to buy this brand. The low price of the brand should also be of advantage to the brand but it shouldn`t be used as a positioning statement. The customers can perceive the low price as signifying low quality. Victor Plus should give emphasis to its taste and purity of its cocoa, taking the customer right to its source of plantation. This fact could be projected in an interesting way to create a differentiating factor in the minds of the target customers. The product Victor Plus should have increased nutritional content to provide benefits like proper digestion, high immunity and reparability to the customers. Moreover, the brand should focus on its high taste factor. The packaging and design of the product should also be improved. Heavy brand building activities needs to be undertaken. An attractive jingle can also be developed for promoting the new packaging. BENEFITS: The primary benefit of Victor Plus should be understood as satisfying hunger and providing nutrition to act as a beverage. The secondary benefits can be understood as good taste, helping in building immunity, aiding digestion and high repairing capacity. The functional benefit is to satisfy hunger, providing nutrition, helping in building immunity, aiding digestion and high repairing capacity. 6. Perceptual Maps The arrows represent the position of Victor plus Brand in each chart
1. Price vs. Taste (Victor Plus has an advantage of its taste over most other competitors, but is perceived to be highly priced)
4.5 4 3.5 3 2.5 2 2 2.5 3 Price 3.5 4 Series1
2. Price vs. Nutrition (Victor Plus is perceived to be low in nutrition but highly priced by customers)
4.5 4 Nutrition 3.5 3 2.5 2 2 2.5 3 Price 3.5 4
Taste
3. Nutrition vs. Brand name (Victor plus is perceived to be inferior in terms of Nutrition and Brand name by customers)
5 4.5 Brand Name 4 3.5 3 2.5 2 2 2.5 3 Nutrition 3.5 4 4.5
4. Price Vs. Brand name (Victor plus is perceived to be priced high by customers and its brand name is not famous)
5 4.5 Brandname 4 3.5 3 2.5 2 2 2.5 3 Price 3.5 4 Series1
5. Brand name vs. packaging (Victor Plus is perceived to be inferior in terms of its brand name and packaging with respect to its competitors)
4.5 4 Packaging 3.5 3 2.5 2 2 2.5 3 3.5 Brandname 4 4.5 5
7. New design of package ? The company should revamp its product packaging and redesign the labeling to give it a more modern and contemporary look. The way the existing package looks not pleasing for children who are the prime targets for a product like Victor plus. Most major players such as Horlicks, Bournvita, Complan, and Boost are all available in 200gm and 500gm packs. They are also available in refill packs. This is an area unexplored by VCIL. It could provide the same sizes as offered by other players and smaller packs of 100gm for trial purposes and 1000gm for loyalists with substantial price benefit. Given the fact that this segment is price-sensitive, institutions should be serviced by the distributor of the company directly. Thus, there is further cost saving and the product can be sold to the restaurants at a determined. In due course, VCIL can consider 1 kilo pouch packing that will save packing costs further. The packaging can have several changes like the wrapper being associated with one significant colour say, Orange. This is because any chocolate drink is associated with a colour eg. Horlicks being blue, Complan being brown, Boost being red and Milo being green etc. So it will be better if Victor also is expressed in Orange. The front side of the bottle will have “Victor Plus” written in Dark brown colour symbolizing Chocolate flavour with a small cow image on the center left showing the purity of milk, then a flow of milk falling from the name into cup of Chocolate flavoured milk. This will explain why it is important to have the consumer connected with the fact that it is a chocolate drink.
?
?
?
?
The back side of the bottle would have a cat symbolizing the taste of milk with random shaped text box highlighting the words “Super taste” which might serve the purpose of consumer attraction. Also the left and right sides of the bottle can explain “Richer Taste Instant make” and “Hot cocoa served to taste”. These kind of words will attract customers towards their product. But all should be in a background of Orange colour as consumers should associate Victor Plus with orange colour. 8. Promotion and advertising budget for Victor Plus and description of a new print advertisement. ? The company?s The advertisement budget of Rs 30 lakhs in 2000 works out to 2.6 per cent of its sales turnover from chocolates and Victor Plus. This is far below the advertisement spending of other players like Complan, Horlicks etc. Being a new player attempting to develop a new segment, VCIL should be prepared to invest around 10 per cent of its expected turnover of the brand in advertising and promotion. ? The advertising in newspapers that too in regional ones do not suffice the purpose of fetching yields because the children and housewives who read newspapers are very minimal. Also advertising in last page is not significant because generally last page has sports news which is rarely read by women and children. And if it is spread over a long period of time, it has virtually no impact. ? The choice of newspapers as the medium for advertising of Victor Plus needs reconsideration. The readership of newspaper among women in our country is very low, whereas the decision-maker for purchase of health beverages in households is the mother. Therefore, the product can be effectively advertised in regional and women oriented magazines such as weeklies and fortnightlies, which are read widely among women under discussion. ? In fact, VCIL has wasted resources because of prolonged advertising which is ineffective. At the end of the day, VCIL is selling a food product, where taste matters. Taste can be exhibited only by showing the visual pleasure which can be done by concentrating on TV advertisements. The investment in production of a commercial is essential. A commercial which can be aired on regional channels or on local cable networks which is cost effective. ? It gives immense opening and will also help to kick start the operation. Currently, the promotion campaign and the advertisements are focused on children alone. It could augur well for the company to realize that other segments are also prospective markets. The company should leverage its brand image by various brand-building programmes. Awareness and loyalty programmes should be initiated at the school level itself. For instance, events like an intra-district sports meet could be organized to back its claim “the tasty cocoa-based health drink.”
The print ad can be one in which the ad depicts the united family as the major pictorial part. This ensures that consumers feel attached to the ad. In that it can be depicted with say some health oriented facts like 60% carbohydrates, 70% proteins, 30% fat and 90% vitamins are required for a healthy family. The statements like “Start your day with Victor Plus Spend your day with all the nutrients” can be line at the bottom of the ad. This would help us in associating the advertisement with Victor plus that it is for the health of the family and it is a family drink. 9. Promotion strategy At present Victor Plus is getting the needed shelf space among the retailers. One of the main reason for this is retailers just get very less margin on Victor Plus. Victor Plus = 12% of Rs 70 = Rs. 8.4 Other Brands = 10% of Rs. 97 (assumed average price) = Rs. 9.7 The retailer gets an additional Rs. 1.3 for every other brand sold when compared to Victor Plus. The margin on Victor Plus has to be increased; they can give a commission of 13%. This would come to Rs 11.7 for the retailer on 500 gram bottle. It is almost 2 rupees extra than the other brand. This additional margin is needed to make the retailer push your product in the market as other brands are established ones and has a very strong demand. Also, the distributor and super-stockiest commission have to be increased, at present it is just 6% for both of them. Other competing brands in the market are giving a commission of 8%. To successfully push Victor Plus in the channel all the channel members will have to given a higher commission compared to other players. This implies that Victor Plus should also give around 8% commission to both super-stockiest and distributor. To make it more attractive to customers they could also think of having a premium along with the 500 gram bottle. The premium should be attractive and useful to housewife/women as they are the decision maker while purchasing this product. Also, it should be noted that this promotion through premium should be for a short duration of time, probably just for six months. 10. Pricing strategy The current price of Victor Plus is Rs. 70 per 500 gram bottle. This is very less than the current market average Rs. 97.1 for 500 gram bottle. If we look at Table 6 it can be observed that Victor has got second highest rating in „Taste? and „Easy to Mix? parameter. It should try to leverage on this and sell at a higher price in the market. It should also focus on packaging which currently is lowest amongst all the brands. The new packaging should be attractive and should focus more on the nutrition content. This would help Victor Plus gain the necessary attention among customers. The customers should get the feeling that it is a premium product from the looks of the packaging. Thus, Victor Plus would be able to command higher price from the product. They should aim at keeping the price in the range of Rs 90 to 95 for a 500 gram bottle.
11. Introduction of New Variant for Institutional segment The institutional segments include Hotels, Restaurants and other food outlets where people come and have their preferred food. In such segments customers generally prefer taste over other factors namely Metabolism, energy, Immunity and growth of tissues. In these segments Victor Plus can create a variant that has a better taste than other competing milk beverages. Some ingredients that are especially used for improving the health factor of the beverage can be compromised for better taste so that the manufacturing cost of the product doesn?t increase by a huge number. Ingredients such as Sugar, Salt, Cocoa, Sodium Bicarbonate, Caramel Glucose/Sucrose and additional flavours must be added which improve the taste of the product. Moreover ingredients which facilitate the solubility of the product with hot and cold milk must also be added so that Victor plus can be served both as a hot as well as a cold chocolate drink. This new product can also be packed in a sachet or small packet so that the proportion of the product is uniform when mixed with a certain predetermined quantity of milk. This would ensure that the taste of the drink is standardised and will reduce the element of human error in these institutions.
doc_636858233.docx