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Group 3
Ayush | Chaitanya | Harpreet | Hiteshwar | Srinivas | Kunj |
Sandip
Introduction
Paper Boat is a brand of non-carbonated beverage and ethnic Indian drink produced and
marketed by Hector Beverages, which is located in Bangalore, India
Paper Boat beverages were introduced in August, 2013 as a traditional, authentic indigenous
drinks, packaged in single serving flexible pouches.
Its markets include India, Dubai, Malaysia, UK and US with very strong presence in two
Indian cities, Bangalore and Delhi.
Paper Boat constitutes 90% of Hectors total sales, rest coming from energy drink, Tzinga.
It has evolved from 80 packs per minute capacity plant in Manesar to 380 packs per minute
capacity plant in Mysuru
Charge premium;
Differential
pricing in
different
channels
Promotion
Unique
combination of
drinks and
memories;
Appealing
packaging with
vibrant colors,
cute doodles
Place
Shelf space at
retail; Served at
10000 feet
above sea level;
Aspirational
platforms like
Barista and
Trident
Price
Emotional Value
Nostalgia/Innocent
memories based
products
Functional Value
Unique and
differentiated variants
Economic Value
Charge premium; low on
economic value
Target audience Mostly between 18-40 years of age in metros and tier-1,2 cities;
Widespread Indian diaspora across 10 other countries including Dubai, UK, Malaysia,
etc.
Compelling and Differentiated by being able to make people taste memories
Distribution channels
Retail
Stores
GT
Whole
sellers
Pan shops
Indo nissin
Institution
al
Paper boat
Modern
trade
Own
distributio
n
Online
Restaurant
s
Mess
Hyper
market
chains
Online
grocery
Apps
Amazon,
Flipkart
etc
Institutional
sales like
airlines
Paper boat
manufacturin
g plant
Carrying &
forwarding
Agent
Carrying &
forwarding
agent
Super
stockist
Distributor
Distributor
Dealer
Dealer
VP
DGM
RSM
ASM
ASM
SO
DSR
DSR
ISR
DSR
SO
SO
SO
DSR
ISR
promote
r
Order creation
This is to promote
sales on retailer side
With every 10 cases,
retailer gets 50 Rs off
per case (1 case = 48
pcs)
With every 20 cases,
it gets 80 Rs off per
case
With every 30 cases,
it gets 100 Rs off per
case
Secondary Scheme
Primary Scheme
Margin
Rs
25
Retailer margin
4.13
20.87
Distributor margin
8%
1.55
19.32
Name/Title
Margin (in %)
Rs.
25
Retailer margin
4.13
20.87
Distributor margin
7%
1.37
19.50
6%
1.10
18.40
MT margins
Modern
trade
retail
chain
Discount/
Margin
15%
Spencers
17%
V-Mart
11%
Walmart
20%
Reliance
20%
(Not in
Lucknow)
* Challenge faced
Lucknow 4
Kanpur 3
Varanasi 1
Gorakhpur 1
Bareilly -1
Challenges
Incumbent players dont allow Paper Boat to keep stock in their refrigerators.
Aamras is the dominant flavour in terms of sales (70+%).
Rural customers may not pay price premium for higher quality.
Retailers not allowed to order only Aamras or restock only Aamras to prevent other
flavours getting sidelined.
Multiplexes, a key institutional channel, yet to be penetrated.
Way Ahead
New flavors including region-specific ones; More SKUs - half litre
packs, gift packs announced
Tailoring products to meet needs of rural markets
THANK YOU