Marketers viewpoint: Macro Environment Factors:

Economic factors: Economic factors are responsible for the purchasing power of potential customers and the firms capital investment. The main macroeconomic factors are: economic growth, interest rates, exchange rates, and inflation rate. The inflation rate in India was last reported at 7.25 percent in July of 2012. There are wide variations in the purchasing power in Indian states due to which we might have to make different promotional strategies. Socio- Cultural Factors: The key emerging health concerns amongst Indians include diseases of the heart and digestive system, obesity, bone and joint pain, depression and anxiety, lack of energy and stamina and sleeplessness. The growing awareness amongst Indian consumers regarding several ingredients and their associated health benefits is making them more inclined to use nutritional information very often to make product choices. Hence there is a demand for food and beverages with health claims. Technological Factors: The technological factors which reduce the cost of production and barriers to entry include: R&D activity, automation, rate of technological change, technology incentives. Cloud 9 is manufactured by Goldwin Healthcare Pvt. Ltd, the specialists in the manufacture of 100% Natural Lifestyle Energy Drinks and Caffeine-Free Cola. Hence, company is highly advanced in development of product, R&D and machinery. Political and legal factors: In India, there are no standards for energy drinks under PFA Act, 1954. The standards of carbonated water under PFA Rules, 1955 specify the maximum limits of caffeine of 200ppm, which subsequently on recommendations by Central Committee on Food Standards were reduced to maximum level of 145ppm. Food Safety and Standards Authority constituted an expert group to examine the scientific literature and global position on use of caffeine and non-carbonated beverages and their labeling and to recommend the limit of caffeine in energy drinks and non-carbonated beverages under Food Regulations. The Group was also asked to suggest whether any standards need to be laid down for energy drinks keeping in view the assessment of risk. It made the observation that Caffeine is not an additive but a chemical with addictive property. Caffeine up to 200 ppm is added as a flavouring agent but above 200 ppm it is a functional ingredient. The functionality of caffeine at 19 320 ppm needs to be ascertained along with justification for fixing a cut-off limit at 320ppm.

Demographic factors: The demographic segment containing college students ranging from teenagers to post graduates witnesses a variety of constituent individuals in terms of energy, purchasing power, preferences, vulnerability to alcoholic beverages. This group has taken up to snacking as a way of life as they keep missing regular meals due to erratic schedules. Besides, studying late nights, energy drinks have gained popularity among them. Energy drinks serve as energy boosters for working professionals for chilling out on

weekends after working long for hours, creates distress, monotony and fatigue, leading to burnout. Sportsmen constantly thrive on energy drinks to maintain high energy levels

Critical decision areas (opportunities):

1. To increase the market share it has the gaming ventures option as formula car racing. 2. The company can promote themselves by emphasizing more on health food particularly among youth. 3. By sponsoring fashion shows and college festivals they can increase their brand name among consumers. 4. Traditionally energy drinks are sold through supermarkets, but another channel can be collaborating with cafes, restaurants, fitness centres, etc. for both promotion and sales. 5. As many as 64% of the youth feel that alcohol consumption is not at all acceptable. This segment of the youth population is also being targeted. Being health conscious this segment of the youth population might be a potential market for Tzinga. This can be done through by organizing an interactive event, which will be fun for, students and youths and beneficial for tzinga.