CONTENTS

EXECUTIVE SUMMARY

INTRODUCTION

RATIONALE

MARKETING DECISION PROBLEM

SCOPE

LIMITATIONS

DETAILED METHODOLOGY

LITERATURE REVIEW

SECONDARY STUDY

PRODUCT SPECIFICATION

STP

CVP

11

BRANDING

12

SWOT ANALYSIS

15

COMPETITIVE DYNAMICS: PORTERS FORCES

17

ANSOFFS MARKET-PRODUCT GRID

18

PRIMARY RESEARCH

19

FINDINGS

24

RECOMMENDATIONS

29

PRINT ADS

33

EXECUTIVE SUMMARY
The intent of this report is to bring out the applications of marketing management
concepts. Tzinga, an energy drink was chosen for this purpose. Motivation behind selecting
Tzinga comes on the purview that it is the only Energy Drink of Indian origin with an intensive
growth profile for a relatively young industry.

The prime objective was to understand and recommend marketing strategies for Tzinga. Focus
was laid on accessing market opportunities, customer value addition, analysis of consumer
market, evaluation of competitive dynamics and branding.

The initial secondary research revealed the current segmentation, targeting, positioning,
communication and branding strategies of Tzinga. It also uncovered the energy market trends
and competition patterns. Low cost being Tzingas unique selling point drove it to a relative
dominance in the market in a short period of time. Further, primary research constituted blind
test, market survey, interviews with retailers, distributors and co-founder of hector beverages.

The procedure exposed the product strength of Tzinga, reaffirmed the positioning
appropriateness and unveiled the necessity of improvements in terms of price-positioning trade
off, communication, distribution and brand building. Indian-ness of the product and its low price
can be exploited for promotion apart from increasing availability through incentivising
distribution.

INTRODUCTION
The global beverage market is growing at a Compounded Annual Growth Rate (CAGR)
of 4.6% and is expected to hit $1.3 trillion by the year 20171. And the most dynamic sector which
is leading this growth is the global Energy Drink Market. Ever since the launch of Red Bull in
1987, this market has flourished at an astonishing rate, generating revenues to the tunes of
billions of dollars. But in a country like India with a huge base of prospective customers, this
market has not been tapped to its fullest. International players like Red Bull and Gatorade still
dominate the equation, though a lot of new players are trying to enter this zone. In such a
competitive environment, one drink which stands out and seems to have a promising future is
Tzinga.
It is a product by Hector Beverages Pvt Ltd., an Indian start up dreamt by two young
management graduates Neeraj Kakkar and James Nuttal 2. Based in Gurgaon, the company
came into existence in 2011 and since then has sky-rocketed into the energy drink segment. The
company now sells about a million units each month across 45 cities in India 3. It has a deep
market penetration in Delhi, Bangalore, Goa and the north eastern states and is trying to gain
ground in other regions as well. The main reason for this stupendous growth can be attributed to
its price, which is almost 70% less than its main competitors. It also comes with a unique
packaging which is one of its USPs as per the creators. We plan to do a comprehensive study
determining all the factors behind this growth story keeping our main focus on marketing.

1
2
3

http://www.companiesandmarkets.com
http://www.tzinga.in
http://www.business-standard.com

RATIONALE
The main motive behind choosing this project is to study the inspiring growth trajectory
of Tzinga. It provides an excellent opportunity to understand the nuances of consumer choices
and sales pattern in India. By experimenting in the relatively unexplored arena of Energy drink
sector in the country, we hope to build a strong foundation of core marketing concepts which will
help us throughout our professional lives.

MARKETING DECISION PROBLEM

To evaluate the current segmentation, targeting and positioning strategies of Tzinga and
to recommend strategies for its branding and promotion.

SCOPE

To identify and match the positioning statement of Tzinga and to evaluate the necessity of

change
To define the target market, focal value elements and price-value relationship with

respect to Customer Value Proposition

To understand competitive dynamics of brand image and hence to come up with Branding

and Communication strategy for Tzinga

To understand the product preferences, consumers taste preferences and Tzingas brand
perception through primary research, blind test and interviews and hence to estimate the
growth prospects suggesting promotion strategies, recommendations and contingency
plans

LIMITATIONS
1. Constraints in Primary Research: Energy drink market is a subset of the larger beverage
industry and therefore has a consumer base with limited age group, lifestyle patterns and
popularity, of which Tzinga is a relatively new product and is less popular. This was a
challenge in terms of conducting primary surveys as it involved identifying appropriate
target groups.
2. Limited area coverage: The campus comprises an eclectic mix of students from various
parts of the country and thus provides a comprehensive group to conduct this study.
Therefore, the scope of this project has been limited to IIM Bangalore and the
neighborhood of Bannerghatta region.
3. Frame of Reference: This study has been conducted from an external frame of reference
in the sense that, with no actual experience and judgment of the energy drinks product
market. This might have resulted in assumptions and indications slightly different from
the actual energy drink market environment.
4. Market Dynamics: It is a fact that the market dynamics are dispersed and varied.
Regional influence of substitutes and competitors on consumer preferences is diverse.
This makes the study subjective and strictly adherent to specificities of research
environment leading to biases in perception.
5. Consumer Behavioral Dynamics: Change in consumer preferences, tastes and behavior,
relative to market dynamics and self-actuation is a major instigator of limitations of this
report

DETAILED METHODOLOGY
5

The key parameters responsible for the success of any project are planning and execution.
Adhering to this idea, a detailed methodology was followed during the entire course of this
report, and the same is described below:
We started by defining the precise marketing decision problem to ensure that we dont deviate
from our main objective. The next part included extensive research about Tzinga, its parent
company Hector Beverages and the energy drink market in general. A variety of resources like
newspapers, magazines and journals were referred, with internet emerging as the main
contributor of information. The company website provided major insights about Tzinga, whereas
research papers from online forums namely EBSCO and Sarvam formed the foundation of our
literature review.

Having performed significant secondary research through the aforementioned sources, we set out
to corroborate these findings. This analysis was done based on various marketing models and
frameworks. SWOT analysis evaluated the strengths and weaknesses of Tzinga meanwhile also
listing down the numerous opportunities and threats for Hector Beverages. Market forces were
evaluated based on Porters five forces and growth strategies were proposed using Ansoffs
Market-Product Grid. This study helped us understand Tzinga as a product, its production
techniques, prevalent supply chain, operating challenges, organization structure and overall
6

financial health. It also gave us headway on Tzingas competitors, their strategies and market
share.
The primary research is the most detailed aspect of this report and was conducted in the
following ways:
a) Blind Test: 10 students of IIM-B were asked to compare Tzinga versus Redbull on
various parameters.
b) Consumer Survey: An online survey was conducted and carefully monitored to restrict
the respondents to IIM-B and nearby region as clearly specified in the scope and
limitations.
c) Retailer Survey: Shop owners of Mom n pop stores like Athicas and supermarkets like
Nilgiris were interviewed to understand Tzingas distribution channels and existing
markets in depth.
d) Personal Interview with the co-founder: Mr. Suhas Misra, the Co-founder and Director of
Hector Beverages obliged us by providing the managements insights on Tzingas current
and future strategies.
A large amount of first-hand data obtained through these tests and interviews was analyzed in
detail. Explanations were provided with the help of graphs and other statistical tools for better
understanding. After brainstorming on the problems faced by Tzinga, the team recommended
certain solutions aimed at improving Tzingas branding and communication strategy. We
extended these proposals by designing print and video advertisement campaigns for Tzinga, thus
concluding our report.

LITERATURE REVIEW

When Neeraj Kakkar and Suhas Misra, both ex-employees of Coca-Cola 4, came up with
the idea to start a company, they were in search of a magic formula that would provide an
affordable energy drink for the Indian market. Their main focus was to create a perfect blend of
taste, price and packaging and these efforts finally yielded results in the form of a fruit flavoured
drink with natural ingredients.
According to Kakkar, energy drinks in India are projected as premium products and consumed
mostly by athletes, gym enthusiasts, students and socialites-rarely the average citizen. They are
costly, primarily due to high import duties. For example, Red Bull, which occupies a major share
of the energy drink market in India, costs around Rs. 95 for a 250ml can. However, Tzinga, on
the other hand is priced a lot cheaper at Rs. 25 for the same quantity.
Banking on its Customer Value propositioning, the company has grown tremendously in the past
two years and is already a market leader in Goa and the north eastern states. The company has its
manufacturing unit at Manesar, near Gurgaon and another larger production unit is coming up in
Mysore by October, 2013.
According to the American College Health Associations National College Health Assessment 5,
stress, sleep, disturbances, anxiety and depression are among the top five threats to academic
performance among college students. Researchers have indicated that within the current
regulatory void, energy drinks, if aggressively marketed will appeal particularly to the niche of
young males seeking performance enhancement and other stimulation related effects.
4

http://ehis.ebscohost.com/ehost/detail?vid=4&sid=6075004a-716f-44d7-bf78488cb288182e%40sessionmgr15&hid=2&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d
%3d#db=bth&AN=85104697
5

http://ehis.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=6075004a-716f-44d7bf78-488cb288182e%40sessionmgr15&vid=7&hid=2
8

The popular energy drinks, namely Red Bull, Monster etc. include active ingredients like
carbohydrates, taurine, glucuronolactone and caffeine. They have several benefits like increased
attention, emotional states, endurance and physical performance. However, these benefits pale in
comparison to the adverse effects, particularly increased blood pressure, elevated blood glucose,
dehydration and dependence.

SECONDARY STUDY
PRODUCT SPECIFICATION OF TZINGA
Table-1: Tzingas natural specifications
Sl. No.
1.
2.
3.
4.

FEATURES
Appearance
Flavours/ Variants
Carbonation
Key ingredients

5.
6.
7.

Key nutrients
Packaging
Serving Size

SPECIFICATION
Coloured Liquid
Mango strawberry, Lemon Mint, Tropical trip
No carbonation
Guarana extract, Ginseng (Anti-carcinogenic and antioxidant), mixed fruit juice concentrate (from pear,
pineapple, mandarine, apple, passion fruit and lemon),
acidity regulator, taurine, caffeine, inositol and Dglucoronolactone.
Vitamin-C, Niacin, Pantothenic acid and vitamin B-6.
Plastic bottle
250 ml

Table -2: Tzingas nutritional content

Units
Per 100ml
Kcal
48
Carbohydrate
G
12
Sugar
G
11
Protein
G
0
Fat
G
0
TARGETING: Tzinga is targeting consumers with the following profiles:
Energy

a) Young students and working professionals between the age group of 16-30 years

b) Lower and middle income groups

9

c) People living in urban areas - Metros, Tier-I and Tier-II cities

d) Sport enthusiasts / Performers

SEGMENTATION: The target consumers of Tzinga are profiled as follows:

a) Geographic segmentation :
The major demand for energy drinks comes from Tier-I cities where people lead a
stressful life owing to their working environment. The population has been segmented as
per their background, either rural or urban.
b) Demographic segmentation (Age, Gender, Income):
The target market of 16-30 years can be further classified into the following groups:
(i)
Age 16-24: The school/college population which requires energy drinks mainly
(ii)

because they are involved in sports.

Age 24-30: The young working professionals who use energy drink requirement

(iii)

is to combat their stressful work life.

Gender based: While the current market share is dominated primarily by the male
population, recent trends of energy drink consumption show female segment is

(iv)

also on the rise.

Income Aspirants & Seekers: While premium energy drinks like Red bull target
the higher end customers, Tzinga reaches out to a larger group that comprises of
the Aspirants and Seekers

c) Psychographics segmentation: It is suited to the lifestyle of students and young working

professionals working late night for long hours.

d) Behavioural segmentation:
Tzinga is currently manufactured in 250ml pack for both light and heavy users even
though heavy users account for a high percentage of total consumption. Also the
segments are clearly demarcated on the basis of awareness and response to the product.

POSITIONING: Tzingas pricing model strongly indicates that its core positioning strategy is
value for money. It is also positioned as a healthy energy drink made of natural extracts;
10

without any artificial chemicals and zero side effects. The product tries to build up a youthful
and cool image in the minds of consumers. Its promotion campaigns such as conquer the night
and you are a sum of your obsessions validate the above claims. Another noteworthy point is
the environmental-friendly stance maintained by Tzinga through its unique low-material
packaging and increased emphasis of No littering as clearly mentioned on their website.
Building on the above discussion, Tzingas Points of Differentiation and Points of Parity have
been identified below:

Points of Differentiation: The two main attributes of Tzinga which consumers like and

find unique are:

Low price
Packaging
Points of Parity: Few attributes which have become increasingly common in the energy
drink market and ensure a minimum equivalence with competitors are:
Category points-of-parity: Instant Energy
Competitive points-of-parity: Natural flavours (Organic drink market)

CUSTOMER VALUE PROPOSITIONING:

The following is the value proposition currently adopted by Tzinga:
Value
Proposition

Tzinga
relevant
composition/
attribute6

Benefits
consumers

for Favourable points of Resonating Focus

difference

Real Stuff is Real lemon, Lesser caffeine and Caffeine

content- Could improve the
good stuff
Real Guarana, fruit extracts is a 75mg/
250ml
as percentage of fruit
Real ginseng
health add on
against 80mg/ 250ml
extract and hence
could emphasize this
Mixed
fruit
juice value proposition
content1.8%
as
against 0% of the
market leader
6

http://www.tzinga.in/

11

This Energy Contains

Drink
Guarana
Works
instead of raw
caffeine,
Ginseng,
Vitamin B

Guarana does the

same job with no
negative
effects,
Ginseng has anticarcinogenic
and
anti-oxidant
properties, Vitamin B
that
helps
break
carbohydrates

Claiming
Energy
boosting
through
natural ingredients and
promotion
through
actual communication
of product values

The effect of all

ingredients is not
brought
out
in
promotion
and
packaging.

Green is not Packaging

just
the appeal
colour

Tzinga stands out It allows Tzinga to

from the clutter on claim customers value
the store shelf. It is a for money.
good choice for the
environment.
Customers unstated
need is fulfilled

Tzinga
could
evaluate methods to
reuse packaging and
also offer smaller
quantities, may be
150ml or 100ml
packets

BRANDING
BRAND IDENTITY:
The brand identity is reflected by the positioning strategy adopted by Tzinga as depicted below:
Ingredients Real mixed fruit juice concentrate (from pear, Tzinga has natural components
pineapple, mandarin, apple, passion fruit and as compared to its competitors
lemon) , Taurine, Vitamins, Inositol, Ginseng, which make it healthy
Guarana, Cafeine
Variants
Popularity

Caffeine
Level

Available in three flavours- Lemon Mint, Provides consumers with variety

Tropical Trip Mango, Strawberry
to choose from refreshing
options
Facebook likes -529525 Twitter followers- 836 Within a short span of time,
Tzinga has managed to find a
place for itself in the market
258.37ppm- Tzinga has comparatively less This reduces the ill-effects on
caffeine content and focuses on natural health
elements like guarana.
12

Packaging
Price

Market
Share

Doypack- A packaging innovation compared

to usual metal cans.
Rs. 25 for 250ml. The price is about 4 times
less than its chief competitor ie. Red Bull
which is priced at Rs. 95 for a 250ml can
3%- Though the market share is very low in
comparison to the main competitor Red Bull
yet a strong marketing strategy can help it gain
momentum in the market

Attractive packaging
Cost leadership

Product expertise can aid in

promotion and to obtain a greater
share of the market

BRAND MANTRA
The brand mantra of Tzinga is Wake up! Being an energy drink targeted mainly at college
students, the brand mantra paints a clear picture of what the product stands for. This mantra
chosen by Tzinga satisfies the three criteria for an effective brand mantra:
1. Communicate: The words Wake up! clearly communicate Tzingas promise of
energizing people at any time of the night. They also have a very positive connotation.
2. Simplify: The world today is cluttered place with a person being exposed to more than
100 promotions on an average each day. And in such a situation, this message stands out
from the crowd. It is short, crisp and hence memorable.
3. Inspire: In spite of being simplistic and brief, the mantra holds a lot of meaning and
relevance to the target audience. It symbolizes the spirit of Rise and shine, thus
establishing a much deeper, an emotional connection with the customer.

13

BRAND POSITIONING

BRAND ASSET VALUATOR

14

CUSTOMER-VALUE HIERARCHY

SWOT ANALYSIS:
Strengths
15

Pricing: At Rs. 25 for 250 ml, it is the most inexpensive drink available
Packaging: Its unique packaging is environment friendly and is easier to carry around.
Flavours: It comes in three exciting flavours Lemon Mint, Tropical Trip and Mango

Strawberry, of which Tropical Trip is the most favoured among youth

Natural Ingredients: It uses natural ingredients like lemon, ginseng, guarana etc.

Weaknesses

No Aggressive Marketing: Lacks aggressive marketing techniques like celebrity

endorsements, sponsorships, television campaigns, college promotions etc.

Availability of the product: Not easily available in all the cities
Awareness: Due to poor marketing, many people in India are unaware of this brand
Manufacturing Units: Currently only one manufacturing unit in Manesar near Gurgaon
and an upcoming plant in Mysore

Opportunities

Availability of the product: Being an energy drink, opportunities can be explored in

universities and colleges around the country

Demographic Opportunity: India, with a median age of 25.4 has the highest population of

youth in the world providing immense opportunity for growth.

Tie-ups: Tie-ups with major sporting events can help boost the sale of the product.
Target Markets: Only the youth is targeted currently. Since the product is natural, the

targets can be expanded to include adults also

Tier II Cities: Aggressive marketing in Tier II cities and rural areas

Threats

Misconception: Energy drinks are closely associated with alcoholic beverages. In a

country with strong values and traditions it might seem a deterrent.

Competition: The main competitor, Redbull is the biggest player globally and enjoys a

huge financial clout. With its intensive marketing strategies, it is always a big threat
Health Concern: The presence of caffeine can always cause health related issues.
16

COMPETITIVE DYNAMICS:
The market scenario is analyzed using Porters 5 forces and the inferences for future growth will
be drawn from the same.
Porters 5 Forces
Rivalry among the competitor

Analysis
Red Bull, Cloud 9, Power horse, Triple X, Burn(Coca Cola),
SoBe(Pepsi), Gatorade
Triple X is likely to launch Packets of Energy drinks named Dishum
targeting Tzinga with its Rs. 25 price tag

Threat of new entrants

Other internal players might explore new variants with prices on par
with Tzinga
Other international players might probe into possibilities of market
expansion into Indian markets
Switching cost of suppliers is low which reduces the bargaining
power of the suppliers

Bargaining power of supplier

Low cost of raw materials/inputs gives them a low bargaining

power
Critical production inputs are similar making it easier to mix and
match inputs, hence reducing their bargaining power
Advantageous pricing (Rs. 25) compared to competitors (Rs.95).

Bargaining power of buyers

Threat of substitutes

Presence of large number of consumers low bargaining power of

buyers
Fresh juice, Natural packaged juice, Tea/Coffee, Sports drinks, Soft
drinks, enhanced drinking water

17

ANSOFFS MARKET-PRODUCT GRID

MARKETS

PRODUCT

1. Market Penetration:
Advertisements: TZINGA is a very passive brand compared to its competitors. This
strategy might work in the shorter run, but to achieve a cult status, it must launch
aggressive advertising campaigns. Various media such as TV, Newspapers, Radio,
Billboards and most importantly, online marketing can be used. Sports/Film celebrities

will make the campaign more effective.

Promotion Campaigns: The touch points for Tzinga are restricted only to retail shops
and hence, it must actively associate itself with college fests, sports events, rock shows
etc to connect better with the youth. Special Tzinga gangs can be created to create
awareness.
18

Distribution Channel: They are of utmost importance in the beverage industry as brand
loyalty is fluctuating and Substitution is common. The consumer might end up buying
whats most easily available. Thus, Tzinga needs to be more visible in stores everywhere,

from Mom n Pop shops to big malls.

2. Market Development:
Geographic Expansion: Education sector is on a boom and the Tier-II cities are driving
this growth. Thus a majority youth population resides here. Being a cost leader, Tzinga

must explore these smaller markets extensively.

Demographic and Psychographic Expansion: The general perception that energy drinks
are only for the male youth population must be challenged. Tzinga must target the

female as well as adult working population, who are in constant need of energy.
3. Product Development:
Micro segmentation: Once the brand is firmly established, the product can be customized

to cater to micro-segments like children, housewives and the working class.

New Product Range: Apart from energy drinks, the company can also come up with

related products like Energy candies and Energy bars to attract more customers.
4. Diversification:
At the current stage, Tzinga does not have many options to diversify. But certainly with
growth, the parent company Hector Beverages can consider Concentric and Horizontal
diversification.

19

PRIMARY RESEARCH:
As mentioned in the methodology earlier, the primary research has been divided into four
parts Blind test, Consumer survey, Retailer survey and an exclusive interview with the
companys Co-founder/Director. The reason for adopting this four-step approach is to understand
the product and its strategies from the perspective of all its stakeholders. It will provide us an all
inclusive view to help us decide the branding/communication strategies and recommended
measures.

(i)

Blind Test: Strong Product

As Redbull is seen as the main market leader, the blind test was conducted to compare it with
Tzinga and evaluate both the drinks on accounts of taste and mildness. Ten individuals
hailing from different geographical and demographical segments were chosen to have a
heterogeneous mix. They were then given samples of both the drinks, and asked to rate the
two on various parameters. Following is the summary of the results:

20

21

The test clearly indicates that Tzinga is a strong product with superior rating in both taste
and mildness. Two other key findings from the test are summarised below:
a)

While 7 out of 10 respondents rated Tzinga better than Redbull, 6 out 10 did not even
know about Tzinga. And among the remaining 4, none had ever seen any Tzinga
advertisement. If we compare this to Redbull, all 10 were well aware of the brand and
its strategies.

b)

The average price that one was ready to pay for Tzinga came out to Rs.45.5 whereas
it was only Rs 38.5 for Redbull. Since the current market price of Tzinga is only
Rs.25, this difference of Rs.20 in the prices is nothing but the Consumer Surplus.
On the other hand, Redbull charges way more than the average price one is ready to
pay for it.

Thus, we reiterate the fact that Tzinga is a stronger product compared to its competitors. Even
without enough brand awareness, it made its mark on the audience and therefore, effective
promotional strategies can take it to an entirely different level.

(ii)

Interview with the Co-founder/Director, Hector Beverages

The project demanded us to take a holistic view of the problem and hence, it was imperative to
know the managements viewpoint and future plans about Tzinga. We tried contacting the
company HR in multiple ways and finally succeeded when Mr. Suhas Misra, the Co-founder and
Director of Hector Beverages Pvt. Ltd agreed to be interviewed. He is an alumnus of IIM-C and
currently heads the marketing division of Tzinga, Bangalore in addition to his other roles. This

22

made the talk more relevant to our study. His viewpoints in the form of key excerpts are
described below:
1. Advertisement and Promotion: Tzinga focuses on

Facebook and Twitter for mass promotion of the

product. Being an energy drink, the targeted audience is
the youth. Hence there are points of sale in multiple
colleges,
Mr. Suhas Misra,
Co-founder, Hector Beverages

IT

companies

and

BPOs.

Increased

availability in these areas

and colourful posters ensure that students and professionals are attracted to this product. Tzinga
is also looking into precision marketing through the digital medium.
2. To tackle lack of awareness: Increased promotion activities through Facebook and Twitter
ensure that the youth of today are aware of this product and its benefits. The Facebook page has
over 5 lakh followers and the promoters make it highly interactive by answering their queries.
Points of sale in colleges and various companies also help in spreading awareness.
3. Major Markets: Currently, the major markets of Tzinga include Delhi, Bangalore, North East
and Goa.
4. Distribution Network: A direct distribution pattern is followed in Bangalore. The retail stores
are serviced directly. Biggest volume contributors include college canteens, offices and retail
outlets like Foodworld and Reliance.
5. Future Plans: The immediate plan of Tzinga is to be a 100 cr brand by next financial year.

(iii)

Retailer Survey:
23

Mom n Pop Store: The approximate sale of Tzinga is around 24 packets per week and is
preferred by sportspersons whereas students still prefer Redbull. The vendor visits weekly to
monitor sales and replenish stocks. Tropical Trip is the most popular flavour among customers.
As far as profit margins are concerned, Tzinga scores above Redbull and is a natural choice for
retailers. However, the immense popularity of Redbull forces them to provide it more visibility.
Supermarket: The scenario is quite different with Gatorade (Pepsico) enjoying the highest share
in the energy drink segment, although no specific consumption pattern was noted by the
shopkeeper. The distribution network is quite formalized with an elaborate list of ~150-200
vendors competing to supply. The re-purchase cycle occurs every 3-4 days and approx. 120
Tzinga packets are sold in this duration. Again talking about profit margins, Gatorade gives a
constant 16% whereas in Tzingas case it varies from 14-17%. Redbull offers a minimal 11% and
is thus the least preferred brand by the shop.

(iv)

Market Research Questionnaire

Based on the results of the blind test, we have directed our questionnaire and interviews based on
the 5P model with prime focus to gauge the impact of Tzingas present communication
strategies:
i)

Promotion: The prime focus will be on evaluating the promotional strategies of

Tzinga. The reach of Tzingas advertising would be analysed in detail and the
methods to improve the same would be considered after further interviews with

ii)

retailers and distributors.

Product: The users perspective on the products pros and cons would be obtained
through the survey and interviews.
24

iii)

Place: The effect of market place on Tzingas sales would be briefly covered through

iv)

the interviews with retailers and distributors.

People: The survey would also enable performing a cluster analysis of the market by
segregating the sample into energy drink users; non buyers; Tzinga users and other

v)

energy drink users and identifying their desired features.

Price: The users willingness to pay and response to price changes will be measured.

The sample of the questionnaire has been attached in the appendix.

FINDINGS:
The Primary market research through questionnaires for a sample of people revealed the
following facts which were taken into consideration for the recommendations made:
1. The energy drink market as a whole is a thriving market among consumers belonging to
the age group 16-35, majority (84%) of which includes college students.

25

2. It augurs well for Tzinga that about 62% of the respondents who use energy drinks are
into sports since earlier observations based on Retailer survey indicated a strong
preference for Tzinga by sport enthusiasts

3. The major finding of this survey is that lack of awareness of the brand Tzinga is quite
alarming given its high conversion rate of one-time users to regular users.
Among those who do not consume energy drinks, 78% do not know about Tzinga while a
significant 48% of those consuming energy drinks have not even heard about Tzinga.

78%

26

48%

4. Based on the number of respondents consuming Tzinga, the following Marketing funnel
has been drawn and its clear that more effective promotional strategies are required
because the percentage of Aware customers is low.

5. More than three-fourths of the respondent (79%) have not even seen the present Tzinga
advertisement and this quite substantiates the reason for Tzingas low popularity because
27

more than half (59%) of the respondents feel promotions form a vital deciding factor in
their purchases.

6. Apart from Tzinga, consumers are aware of other brands chiefly because of their TV
advertisements. This further indicates that the competitors promotion strategies are far
more superior to that of Tzingas.

28

7. Tzingas strengths compared to its competitors are its price, packaging and taste (also
confirmed in the blind test) with consumers rating all three parameters fairly the same
way.

RECOMMENDATIONS:

29

1. Positioning: Tzinga has positioned itself as a Value for money product. But the current
promotion strategies of Tzinga do not convey the above message very effectively. Other
unique selling points such as packaging and natural ingredients arent highlighted very
well. The blind test indicated a strong market, but the results of the survey revealed that
close to 36% werent aware of the product. A strong product, with many unique PODs, if
promoted well, can beat all its competitors in market size. Though the positioning
strategy is apt and neednt be changed, the strategies adopted by Tzinga to promote the
brand can be improved to attain more customers.
2. Brand Building and Communication Strategies: With over five lakh likes on their
Facebook page, Tzinga is utilizing the advantages of buzz marketing to the maximum
possible extent. It has a very strong base on Twitter too. Apart from the online sources of
communication, Tzinga also targets the college going crowd through posters on campus
and increased availability in the college canteens. The same goes for working
professionals through office canteens. But when it comes to mass marketing strategies,
Tzinga hasnt resorted to celebrity endorsements or other means of peripheral strategies.
Being an energy drink, associations with major sports events can give them a wider
market base. In colleges, associating themselves with sports fests and cultural fests, and
conducting fun events for the purpose of promotion, can prove helpful. Increased
availability in restaurants and fast food chains can improve their visibility by a great
margin. Thus, by adopting better promotion strategies, Tzinga can attain its 100 Cr. target
in a very short span of time.
3. Branding vis-a-vis competitors: Competitors of Tzinga enjoy a huge financial clout and
thus spend a significant amount on brand building. They are perceived to be of higher
quality due to their peripheral associations and the general belief that costlier products are
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superior. Tzinga on the other hand is viewed as a value for money product implying that
the consumer preferences will change once their income increases. So we need to clearly
communicate that our quality is supreme. This can be achieved by means of informative
and aggressive marketing strategies.
4. Promotion- Pricing Trade-Off: Brand promotion of Tzinga has to be scaled up for better
visibility in the market for three reasons. Firstly, primary research suggests that
promotional strategies form a critical factor affecting consumer buyer behaviour. 13% of
the respondents felt it was the most decisive factor while 46% felt it was very significant.
Secondly, only 64% of the total respondents were aware of the brand Tzinga and of those
who were, only 71% had tried it at least once. Finally, the blind test indicated Tzinga as a
strong product and was rated higher on all parameters. So there exists a pressing need to
increase market penetration. Hence, when it comes to a choice between increasing price
to accommodate aggressive promotion and sticking to the current strategy, we have to
take a balanced stance. Price is one of our USPs and thus, we must increase it only
marginally.
5. Increase Availability: The most important aspect of retailing is location and therefore
Tzinga must improve its distribution channels and shelf visibility. This can be done
through various methods like incentives to distributors, exploring new markets and
entering partnerships with larger firms to enjoy their superior network
6. Packaging: The packaging received mixed responses from the audience wherein students
prefer the current portable version whereas working professionals find it a little
unsophisticated. Hence we propose that a premium version of the drink must be released
targeting the higher income segment. These are the people who regularly attend parties
and social gatherings, and thus need a much smarter and refined look. Our product will

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cater to all the non alcoholics at such occasions. Also, we can continue with the previous
package for the students and young professionals.
7. Capitalize on the Indian origin: In a market bursting with foreign players, Tzinga is the
lone flag-bearer of the Indian economy and it must capitalize on this fact. The
promotional campaigns can be designed to make an emotional connect with the audience
and communicate the spirit of Indianness.
8. Opinion Leaders: Young India is tech-savvy and makes conscious decisions after
researching from all the resources. This increases the importance of Opinion Leaders
more than ever. So Tzinga must focus on and try to convince these influential sources
which are looked upon by the youth as highly reliable. This can be done by maintaining
healthy relationships with them and incorporating their feedbacks on a regular basis.
Websites like reviews42.com, worldpress.com and blogspot.com are extremely
famous and must be monitored constantly. Direct interaction with these sources will
certainly help Tzinga to understand its customer better and establish a valuable indirect
contact.

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Print Ads:

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APPENDIX
Comparision between various energy drinks in India in terms of Price and packaging type as per
volume.
bull7 Burn8

Energy
Drinks

Red

Packaging
Type

Can

Can

Volume

250

95

XXX10

Tzinga

Power
Horse9

Cloud

Slimme-r
can

Pouches

Shorter can

Can

Can

Can

355

300

250

250

250

180

250

120

75

25

96

85

45

75.00

(ml)
Price (Rs)

http://www.redbull.in/cs/Satellite/en_IN/Red-Bull-Home-en_IN/Products/011242877412074
http://www.business-standard.com/article/companies/coke-gets-nod-to-produce-energydrinks-in-india-112083000049_1.html
9
http://www.thehindubusinessline.in/2003/07/15/stories/2003071501060600.htm
10
http://www.thexxxenergy.com/links/the_variants/
8

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QUESTIONNAIRE

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