RAJ DRINKS LIMITED

OXY MINT
A PURE DRINK PURE MATLAB OXY mint PURE PIYo PURE

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OXY

mint

INTRODUCTION: A mint based soft drink. A cool

effect and

best for diabetic person. A healthy soft drink for healthy life. Targeted for rural area and urban area both. OXY MINTA pure drink..A sugar free drink with sweet taste

OUR NEW LAUNCH FOR THIS H

T SUMMER

OUR AIM: Provide our customers with refreshing high quality soft drink.
TO become the best every time ,in mint based soft drink (sugar free) we operate by satisfying our consumers ,retailers and distributors with the highest quality drink.
Manage our assets in ways that preserve and protect the environment, the safety of workers and the public.

TO follow all the regulations , norms ,legislations and guidelines for manufacturing soft drinks. To reach rural and urban both customers and provide according to their need.

TO ANALYSE SOFT DRINK INDUSTRY PROFITABILITY.(BY MICHAEL E.PORTER 5 force model) Buyer volume, buyer
Entry barriers: economies of scale, access to distribution, proprietary low-cost product design, government policy, capital requirements, brand identity.etc.

new entrants(th reats of new entrants)

concentration versus firm concentration, brand identity, buyers profit, product differences,

suppliers(bar gaining power of

supplier)

industry competitor s(Intensity of rivalRy)

buyers(bar gaining power of buyer)

Differentiation of input, importance of volume to supplier, impact of input on cost, supplier concentrationetc

substitutes threats of substitutes)

Relative price performance of substitutes, switching cost, buyer propensity to substitute.

FIG: THIS CONCEPT APPLY EQUALLY TO PRODUCTS AND SERVICES (source: competitive
advantage. by: Michael e. porter) These five forces determines industry profitability because they influence the prices, costs and required investment of firms in an industry .the elements of return on investment.

 We put our mint based soft drink in this five force model, for analyzing our new drink in market. BARRIERS TO ENTRY: it is impossible to entry of a new supplier or producer due to all ready existing heavy brand name. POWER OF BUYERS: the soft drink industry sold to consumers through five principal channel: food stores,convenience and gas,fountain,vending,and mass merchandisers.vending is most profitable channel for soft drink.but in india every where it is not available so,we target stores,marts,super markets,road side shops like(gumti or tapri),for selling our product in urban areas.for rural area it is available in tapir or gumti where electricity available or ice is available easily. RIVALRY: revenue are extremely concentrated in this industry.enough competition in the market. POWER OF SUPPLIER: inputs for soft drink were primarly packaging,and sugar,(but we use corn syrup instead of sugar due to high prices of sugar)so,supplier power of bargaining is not two much.in the plastic bottle business ,there were more suppliers so,direct negotiation by the company again effective at reducing supplier power. METHOD OF PRODUCTION: relatively capital intensive technology will be used.

Mint based, sugar free, diabetics also take it, healthy and pure, no close substitutes ,we have loyalty of customers.

strength

weakness

COSTS: the chain stores have better economies .there per unit of cost of selling are quite low, new in market ,first time launched

To reach to the rural or village area, market size for soft drink is large, launched in summer(when demand of cold drink is on peak.

opportunity

threats

Competitor ,target market is very price sensitive, industry is dominated by big player

FIG: SWOT ANALYSIS OF PRODUCT

PRICING STRATEGY OF DRINK: Pricing objective: 1)To set the price according to affordability of both urban and rural customer. 2)To launch mint based drink at a low price ,and when it is accepted then increase cost of the drink slowly.(penetration pricing strategy).source: marketing management by Philip kotler PRICING DECISION IS INFLUENCED BY FOLLOWING: ITS a mint based drink. so,its main component is water and mint,(carbonated water, natural flavor, acidity regulator..etc. so, pricing is generally some less than other drinks available in market.

MARKETING STRATEGY: ADVERTISEMENT: advertising is done through different

advertising media, like television, radio, print media(magazine, news paper),free samples, trade and consumer shows, outlays at railway station.etc.

MARKET SEGMENTATION AND POSITIONING STRATEGY OF OXY MINT

Targeted segment are: both rural area and urban area. youngs, teen_-agers, etc. Customers are targeted on the basis of taste,preferences,etc. Our focus is to segmenting the market will be on providing an enhanced service to the customers by offering mint based good quality soft drink. CONSUMER MARKET IS SEGMENTED THROUGH FOLLOWING CRITERIA: GEOGRAPHICAL SEGMENTATION:MARKET IS DIVIDED ON THEBASIS OF STATES,CITIES,RURALL AREAS(DEVELOPING AREAS). DEMOGRAPHIC SEGMENTATION:IN THIS TYOPE MARKET IS DIVIDED ON THE BASIS OF AGE,GENDER ,INCOME GROUP etc. DISTRIBUTION STRATEGY: Through road transport, use big vans for transporting. Select low cost distributing strategy. Treat distributor as a friend,and provide then good schemes and high margins because they place our drink to every location or shops.

 Examining competitors strategies and comparing them and their effectiveness with ours. New and low cost channel of distribution are used. Personal talk with distributor to improve distribution services.

Distribution strategy for oxy mint

Distributed in railway station shops,cinema halls,road side shops,near metro station in delhi. Distributing through the stores and petty shops situated in every locality.

Reaching out to four different target groups: poor youths (13-21), poor adults(22-50) and even those who are financially stable.

OPERATING PLAN:
our production unit is in SEZ. So we get lots of benefit and now we expand our plant size for producing oxy mint so, we have to expand plant size as per requirement.

LOCATION:

LOCATION IS JUST NEAR TO EXISTING PLANT.COMPANY OPERATING IN NOIDA IN A AREA OF 2000 Sq ft.location is the city and near to delhi,uttar Pradesh,Haryana. So transportation cost are low for distribution,and plant is near to warehouse. Market is near to the production plan. Location is best for operating. Easily available to the people.

FINANCIAL PLAN

ESTIMATED INVESTMENT FOR OXY MINT=20 crore

ESTIMATED COSTS: RAW MATERIAL :3.5 CRORES PACKAGING MATERIAL:1.5CRORE REPAIR AND MAINTENANCE:50 LAKH UTILITIES:4 CRORE WAGES & SALARIES:2.5CRORE ADVERTISING COST:3 CRORE DISTRIBUTION COST:2 CRORE NET WORKING CAPITAL:3 CRORE

NOTE:ESTIMATED COST IS BASED ON HYPOTHESIS

I USE JUST THE APPROXIMATED VALUES.

CONCLUSION: so due to many benefits of mint based soft drink over regular soft drink.oxy mint

Can be used as drink that give a cooling effect to consumers and also provides a sugar free soft drink to diabetic so,launching of new soft drink is a profitable business and investment.