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Market Expansion Strategy

Our strategy focuses on these two entities


1. Marketing
a) Product diversification and Appropriate Positioning
b) Distribution Channel Expansion
c) Improved way of Promotion
2. Sales
a) Geographical Expansion Increased number of outlets
a) Product diversification and Appropriate Positioning
The flavors and product range should be expanded (Product diversification) to include all drinks in all parts of India
For Eg: Shikanji in North India, Coconut Water in South India, Masala Soda in West India, Sugarcane juice pan-India
as well as Pudina Adrak for the health conscious/ herbal fans.
The future increase in consumption of beverage drinks and the move from unhealthy carbonated beverages to
healthier non-aerated drinks should be capitalized upon.
The focus must be on getting the word out to all the customers current as well as potential.
Segmentation must be done on the basis of Age (All age groups right from 8 to 80 year olds, gender both, income
middle and high income as well as psychographic functional benefits v/s emotional connect).
Communication in the advertisements should be focused on emotion as well as value. It should be promoted
through viral marketing and contests as well as campaigns Win a free supply of NUSHKHA for 3 months by creating
a catchy slogan / image for NUSHKHA! OR Relive your childhood for a day by creating a song / video on how
NUSHKHA reminds you of the best years in life.
This will ensure loyalty, word-of-mouth publicity (evangelism) as well as generate new marketing ideas which can be
used by the company to create new advertisements.

b) Distribution Channel Expansion


We need to look at the current market and demand the growth is exponential. Production capacity is barely being
met and thus also infrastructure has to be taken into account. It must be in a structured and focused manner so as to
complement the production. Plants should be set up closer to sources of raw material if possible; and it should be
commercially viable to invest in the long term, i.e. , the cash flows must justify the investment.
Tie-ups with restaurants; as also with Pubs and bars should be looked into as a strategic move for
building a thriving, continuous demand which is more profitable (and also more voluminous) than
individual customers. Multiplex owners and chains can be potential revenue drivers. Also, this drink
should be pushed forward to kids also as in besides being focused on the youth and adults, it should
also be a drink that a child would want and yearn for.
Kids should be targeted by tying up with school canteens. College canteens and offices should be
targeted too. It could sponsor college fests as the Food and Hospitality Partner. The main aim is to
induce trials and give the first time consumer various flavors to try and turn him into a loyal customer.
The most beneficial move would be pushing the product into Retail Kirana stores as well as into Rural
markets and thus trying to capitalize on the hitherto untapped potential of these markets. However,
Rural will be tough to break into, given the premium pricing of the product. So would be Kirana stores,
as stocking up products in one refrigerator will entail fighting for shelf space.

c) Improved Way of Promotion: Aggressive Promotion


i) The media for promoting NUSHKHA Brand are as follows

Outdoor(Malls/OOH)
Electronic

Internet
Print

Social Media
Transit

The prime focus should be at the Awareness stage and popularization initially in the short term, and in the long term
- Hard selling. It encompasses the fact that as more and more people come to know and are made aware, the trial
rate (and also the loyalty and retention) will increase; as evidenced by the past trends.
ii) Expansion can also be in terms of use and occasion of consumption this will lead to increase in overall sales.
For Eg. Consume NUSHKHA on Birthday! A more regular one would be Consume it on Sunday! So as to relive the
days of your childhood. Occasion based consumption will lead to increase in sales.
TV and Print ads can be created one for each aforementioned aspect. Also, celebrity endorsements, ranging from
one generation to another, can be very effective. For example
Ranbir Kapoor, Rishi Kapoor and Shashi Kapoor can all together be shown having NUSHKHA together A
timeless drink across generations.
A group of friends / couple goes to the movies. In the Intermission they come out to eat and ask for
Popcorn and NUSHKHA.
iii) A classic ad can be a father asks his child What do you want for your birthday? And the child replies Lots and
Lots of NUSHKHA! This ad can work very well with the kids, who will push their parents, especially their mothers, to
but a NUSHKHA drink
a) Geographical Expansion Increased number of outlets
Expansion into more markets, both in terms of size as well as geography is essential. We need to promote this as not
only a drink which is reminiscent of childhood, but also as an option for a health conscious customer who is looking to
have fun. The aspect of health should also be promoted upon along with fun and memories.

Market Cannibalization between NUSHKHA and Power Brands


1. Difference in Packaging -> Difference in appeal to the same segment
2. Difference in Pricing -> Difference in Willingness to Purchase by the same segment
3. Difference in Positioning -> what is the message communicated to, by your product? If that differs, the buying
behavior will also be different.
Example - If POWER is a brand of same company, then its positioning should be to energize in seconds or drink
it for eternity or taste the thunder. For a brand like NUSHKHA, the positioning should be to relive the childhood etc.
Therefore, to avoid cannibalization, one should focus on differentiating the same basket brands on these parameters.

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