Hector Beverages Pvt. Ltd.

Introduction
Hector Beverages was established in 2009 by Neeraj Kakkar, Suhas Misra,

James Nuttal and Neeraj Biyani

Hector Beverages is a manufacturer of Energy Drinks and Fruit Juices.
Currently they have stopped the production of Tzinga to restructure the brand.
Currently have operating plants in Mysore and Manesar with a total capacity
of 460 bottles per minute.
Product line includes Tzinga and Paper Boat.
Currently have presence in 10 Countries which includes USA, UK, UAE,
Canada, Australia and other countries.

INDUSTRY ANALYSIS

Beverage industry
Bottled water, juices, functional drinks, RTD tea, RTD
coffee, smoothies, carbonates and concentrates make
up the soft drinks market
CAGR of the industry has been at 12.5% for the year
2010-2014
Industry has been forecasted to have a CAGR of 11.6%
for the year 2015-2019
Consumption of PET bottles more in Urban area

4 Ps of Marketing
Product
Available in 12 Variants
Colorful Packaging of 250ml
Pouch
Providing natural tastes of
the flavors

Price
Different prices of all the
flavors.
Set costs higher than the
competitors

Promotion
Unique way of advertising by
depicting connecting childhood
Social media but most
importantly mouth
communication

Place
Retail outlets
Online stores like Amazon
Coffee chain, airports and
hotels

SEGMENTATION, TARGETING &

POSITIONING
Segmentation
of market
Rural and Urban
Age group and
income group
Countries having
significant PIO
population.

Targeting the
consumers
Primarily city dwellers(Limited
Capacity)

Positioning of
product
Image creation in youth
with punchlines like
Drinks and Memories.

Age group > 16

Middle class income
group(PRICE=30Rs)
Countries having significant PIO
population ex-Dubai.

Portraying the product

as the traditional,
indigenous, and
nutritious drink to old
age group.

Porters Five Force Model

Industry Rivalry : Medium to High

Bargaining Power of Suppliers : High
Bargaining Power of Buyers : Low to Medium
Threat of New Entrants : Moderate to Low
Threat of New Substitutes : High

Brands Market Share

% off-trade volume

Company (NBO)

2012

2013

2014

2015

Maaza (Coca-Cola

Coca-Cola IndiaPvtLtd

25.5

26.5

28.4

28.8

Slice (PepsiCo Inc)

PepsiCo India HoldingsPvtLtd

16.1

18.3

20.7

19.4

Frooti

Parle AgroPvtLtd

19.2

16.8

16.9

15.5

Ral

Dabur IndiaLtd

9.2

9.7

9.2

8.8

Tropicana (PepsiCo

PepsiCo India HoldingsPvtLtd

6.4

6.7

6.3

5.8

Coca-Cola IndiaPvtLtd

3.7

3.8

3.7

Appy

Parle AgroPvtLtd

2.3

1.8

1.6

Onjus

Tunip AgroPvtLtd

0.8

0.9

0.8

0.7

Co, The)

Inc)
Minute Maid (CocaCola Co, The)

Source :- Euromonitor International (Aug 11,2016)

Competitors Market Share

27.9
27

25.3

24.9

25.1

26.9
25.8

26.7

25.5
25.2

21
18.4

Coca-Cola IndiaPvtLtd
15.8

14.4

14.9

15.6
14.7
13.7
13.6

Dabur IndiaLtd

Parle AgroPvtLtd

PepsiCo India HoldingsPvtLtd

Tunip AgroPvtLtd
0.8

1.1

1.2

1.1

2011

2012

2013

2014

2015

Source :- Euromonitor International (Aug 11,2016)

Objectives
In one of the interview, Neeraj Kakkar acknowledged that they
are now earning almost 100% from Paper Boat. Considering,
the sales volume for Paper Boat for is 2 million packs per month
which is 24000000 per year. The sales volume of the
consequent years is as below. Now assuming the 150% growth
considering the fact that they are coming up with 3rd plant and
they are aggressive to grow keeping in mind the tie up between
Hector Beverages & Nissin Foods, the sales volume will be 27.5
crores.

Inhibitors
Procurement of Raw Material
Backward supply of Chain Management
Competitive Market
Limited Consumer Base
Manufacturing Capacity
Distribution Channel
Cost Competitiveness

Antecedants
Healthiness factor is contributing to the growth of company

which is aligning with present need of the consumer.

Emotional connect established with the help of strategized
advertisements aligned with childhood memories of the
consumer.
Present in various variants which fulfill the demand of various
flavours and increase the product line of Hector Beverages
Effective 4 layered packaging which keeps the drink intact
from the effects of external environment.

STRATEGY

Bringing out the nostalgic attachment of the customers

Flexible and sleek packaging
Since many of the direct competitors are non branded, pricing
should be fixed up carefully
Limited number of Celebration packs
If strategy failed, decrease the number of flavors in the pack

References
http://www.paperboatdrinks.com/drinks Accessed on 10th Sep
http://economictimes.indiatimes.com/slideshows/biz-entrepreneurship/newbie-fb-companies-embark-on-of
fbeat-routes-to-reach-consumers/hector-beverages/slideshow/40308507.cms
Accessed on 5th Sep
http://www.business-standard.com/article/companies/how-hector-is-riding-high-on-paperboat-1150721012
71_1.html
Accessed on 5th Sep
http://www.thehindu.com/business/Industry/paper-boat-maker-to-spend-rs67-crore-on-plant-rd/article8442
497.ece
Accessed on 5th Sep
http://www.outlookbusiness.com/enterprise/big-idea/nostalgia-in-a-bottle-965
http://www.business-standard.com/article/companies/how-hector-is-riding-high-on-paperboat-1150721012
71_1.html
Accessed on 10th Sep
Naturally Healthy Beverages in India Euromonitor accessed on 10th Sep
http://www.business-standard.com/article/companies/how-hector-is-riding-high-on-paperboat-1150721012
71_1.html
- Accessed on 10th Sep
http://www.business-standard.com/article/companies/paper-boat-drinks-maker-hector-beverages-on-expa
nsion-spree-115031101078_1.html
Accessed on 10th Sep
http://www.business-standard.com/article/companies/how-hector-is-riding-high-on-paperboat-1150721012
71_1.html

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