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Dinesh Sharma,
SJMSOM, IIT Bombay. Copyright © 2010 Shailesh J. Mehta School of Management, IIT Bombay Page 1
 High on Cloud 9!
As Priyesh Ganatra thumbed through the 2009-2010 annual report of Cloud 9, action shots of
celebrities and sportsmen promoting their products amid the words “Get high every time you
drink”, it brought a smile on his face. As Chief Managing Director of Goldwin Healthcare Pvt.
Ltd. a ` 60 Crore company in 2010, Priyesh was happy at the way the company had taken the
energy drink sector by storm and attained the second position in the market. Yet the last board
meeting left Priyesh in a major tight spot. He sat staring out of the window sitting at his desk in
his office pondering over how to achieve the company’s target to grow to become a ` 100 Crore
company by the next year and consequently reaching the mark of ` 500 Crore by 2015.

Cloud 9 is the flagship brand of Goldwin Healthcare Pvt. Ltd. It has been developed and
produced in India. It is the first manufacturer of Natural Energy Drink in India. It is marketed to
consumers as an energy booster. It uses various vivid and sporty advertising and the catchphrase
"Get high every time you drink." Since its inception in 2008, Goldwin Healthcare has heavily
invested in building the brand. At present Cloud 9 commands a market share of 35% in the
energy drink market which is growing annually at a rate of 60%.

Goldwin Healthcare Pvt. Ltd

Cloud 9 is marketed by Goldwin Healthcare Pvt. Ltd, a business division under Shree Jalaram
Group, recognized as specialists in 100% Natural Lifestyle Energy Drinks and Caffeine-Free
Cola. Cloud 9 achieves this exact balance of 'energy, health & refreshments' through the perfect
combination of naturally occurring, energy rich resources with high-tech manufacturing
techniques that gives consumers the best of both worlds.

Cloud 9 is exclusively manufactured by Pushpam Foods, using its cutting edge technology and
plethora of ingenious solutions and indigenous know-how. Initially Cloud 9 products were
manufactured in Malaysia. But soon it started manufacturing all its products at the company‟s
state-of-the art facility in Nandur, 40 km from Pune (Maharashtra), spread across 27 acres, with a
manufacturing capacity of 400 cans per min (cpm).This facility is an ISO 9001:2000 and ISO
22000 Certified, IASC (USA) and FDA certified, and it adheres to Good Manufacturing
Practices (GMP).

The Board is constituted of the Ganatra family members who have had decades of experience
handling a numbers of successful business. It‟s Chairman, Mr. Mukesh Ganatra, is unanimously
credited for Shree Jalaram Group‟s foray into the Energy Drink and Cola market. Its CMD Mr.
Priyesh Ganatra is one of the youngest CMD in India. He has played a pivotal role in chalking
out the company's organizational and structural framework which has helped Cloud 9 chart a
course of unparalleled success in the industry.

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Indian carbonated soft drink beverage market has traditionally been dominated by foreign
players operating in a duopolistic scenario. In this fiercely competitive market, marked by very
low differentiation, Cloud 9 had to break into and create a niche for itself in order to get
recognized and accepted. The management at Cloud 9 having conducted an extensive and
thorough study of the beverage industry environment in India, concluded that there existed an
opportunity to enter a completely new and unsaturated energy drink market, thus masterminding
the creation of India‟s first natural energy drink and caffeine-free cola, made purely from natural
ingredients, which projects its USP against its competitors.

The name, Cloud 9, itself gives a prelude to the ambitions of the company where, “The Sky is no
more the Limit". Cloud 9 wisely recognized the potential of the energy drink market in India and
entered with full thrust to get a sizable market share in no time. Cloud 9 penetrated the market at
lightning speed, it is rare that an FMCG would occupy such a position in the market in a small
span of time but Cloud 9 made it happen. Today, Cloud 9 is available at 80,000 outlets, more
than 30,000 wine shops, high-end pubs and many five-star hotels across the country.

Cloud 9 is set to take the Jalaram Group to newer heights. Having tasted success in the energy
drink Goldwin Healthcare Pvt. Ltd. has now successfully launched India‟s first 100% caffeine-
free cola. Cloud 9 derives its USP of being consumed by one and all. Other colas, owing to the
high level of caffeine present in them make are not encouraged to be consumed by children.

Market and Competition

India, as an emerging economy booming with real GDP growth from 7.0% to 7.8% in the
coming fiscal year, is creating an ever-growing middle- and upper-class consumer base which
will drive up food, drink and mass grocery retail (MGR) sales in the country. Functional
categories like energy drinks have introduced sugar-free versions to try and attract both health
conscious and diabetic consumers. The Indian energy drink market is in its developing stage as
compared to some of the more mature markets in countries like Europe and the Americas.

The energy drink market in India is currently pegged at ` 250 Crore and is growing annually at a
rate of 60% as compared to the soft drink market at ` 7,000 Crore, growing annually at a rate of
10%. Cloud 9 and Red Bull are the current market leaders with the latter having a greater part of
the market share. On the other hand, there is increased competition among existing players
namely Burn, Spitz KG, Romanov Red, XXX, Fighter, Xtazy and X35 , with a number of new
launches in the market, both National and International, constantly adding to an already
competitive market. Nevertheless, the other companies are jostling for positions and are still to
gain ground on the leaders.

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Marketing Stratagem
Ready, Set, Launch
The energy drink market in India has been mainly dominated by the foreign players. The
favorable market scenario encouraged Goldwin Health Pvt. Ltd. to come up with an Indian
Energy Drink. It was India‟s First Natural Energy Drink made from fruit extracts and other
natural ingredients falling under FDA standard and regulations. During the initial stages the
energy drinks were launched under the brand Cloud 9. GHPL later introduced carbonated cola
drink and fruit beverage under the same brand name. The brand name Cloud 9 as it signifies a
light, happy and elevated state of mind, which is exhilarating and gives an instant energy boost,
yet it is not intoxicating.

Cloud 9 made inroads into the Indian energy drink market with their first variant „Pomegranate‟.
It was launched by Shilpa Shetty at a glittering launch party at JW Marriot followed by a
massive outdoor campaign for Cloud 9 using teasers like “Drive for 30 hrs with Cloud 9”. This
variant was available at ` 90. Cloud 9 tasted success right at the onset; the energy drink received
tremendous response. This was followed by the introduction of new flavors like Wild Berry, Red
Grapes, and the most recent and massively accepted product Premium. These flavors were made
available to the consumers at ` 75. For the launch of „Cloud 9 Premium‟, an outdoor and on-air
campaign was used which received an analogous response. The launch was supported with
exciting danglers, posters and shop signage which were visible across various cities. In addition
to this, a variety of promotional & merchandising material was used in retail as well as star
properties, sampling activities were conducted at all key events and activities. This helped create
brand recognition and aided in intensifying the popularity of the product.

The products were made available in tin cans of 250 ml. Cloud 9 penetrated the market swiftly
and after the overwhelming success of Cloud 9 energy drinks, Goldwin Health Care Pvt. Ltd.
successfully launched India‟s first 100% caffeine-free cola. The Cola has been competitively
priced at ` 20. To strengthen the growth and to stay one step ahead in the extremely competitive
energy drink market, GHPL launched smaller tin cans of 180 ml named as “Smart Cans - Big on
Energy, Small in Size‟. These were obtainable at ` 40 and proved to be hit with consumers.
Recently, Cloud 9 successfully launched its carbonated fruit beverage - Green Apple with Zing,
an exciting new flavor of Green Apple in tin cans of 330 ml available at ` 25.

Journey So Far
Cloud 9 is relatively a young product in the market and it has already garnered a substantial
following with India‟s youth and adults. The consumers have always shown excitement about the
products and have widely accepted them. This is the result of the marketing strategy that Cloud 9
has used from the preliminary days. A successful pretest followed by a successful launch and
product further strengthens the role of marketing in their success. Cloud 9‟s marketing strategy

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looks at marketing as an entire 360 degree solution, which includes innovative branding ranging
from movies to sports, including the IPL. They have remarkable market distribution teams across
the nation, which personally monitors the market segments like malls, multiplexes, retail, 5 Star
hotels & restaurants, pubs, discotheques, gym, spa, cafes and airlines. Each tie up is supported
with POP, loyalty program and consumer offers etc. Today, one can ask for Cloud 9 at one of the
80,000 outlets, more than 30,000 wine shops, high-end pubs and many five-star hotels across the
country.

Strong and innovative marketing strategy has been used, which was effectively backed up by the
popular brand campaign i.e. „Breaking News – Drink and Drive, but only Cloud 9‟, which
created a buzz in the media and attracted the consumer to the product, among many others. The
marketing strategy was spread across the media, including electronic, print and OOH. The
strategy used has at all times ensured that the brand reaches out to one and all. Visibility and
penetration was gained from various exhibitions, road shows & events in malls & colleges. There
has been innovative use of media, for instance having association with the multi-starrer
Bollywood films Paathshala, Jaane Kahan Se Aayi Hai, House Full, Patiala House, and Always
Kabhie Kabhie. The association has been in the form of in film branding and co- promotional
events. A successful partnership with the distinguished photographer Manish Chaturvedi by a
way of a calendar launch helped attract attention towards the products and increased the brand
awareness and visibility.

Cloud 9 has been associated with various sporting events. RP Singh was the brand ambassador
for the outdoor and on-air ad campaign for Red Grapes and Wild Berry. The company sponsored
many mega events & award functions, including a cricket match at Mumbai‟s Andheri Sports
Complex. Furthermore, Cloud 9 has been the official energy drink partner for IPL T-20 Team
Chennai Super Kings, captained by the Indian Cricket Team Captain, Mahendra Singh Dhoni,
which yet again facilitated Cloud 9 to connect to its consumer base and target audience. The star
players like, Dhoni, Hayden, Stephen Fleming, Raina, Parthiv Patel, Badrinath and others were
used in “on-air” and “outdoor” advertisements.

After recognizing the role that specialist media vehicles play in communicating a brand‟s
message effectively by reaching out to its strategic target audiences, the Mumbai local trains and
BEST buses, including the hi-tech AC buses were used for the branding and publicity, this
proved to be very successful. Cloud 9 is been marketed through the new-age media tool of Social
Media and Social Networking, i.e., Twitter, Face book, YouTube, etc. Website being cost
effective business tool, brings the consumer and the company closer and it initiates a more
personal interaction between them. Appreciating this fact, GHPL launched their corporate
website, www.thecloud9corp.com, and also launched two micro-websites,
www.cloud9energydrink.com and www.cloud9cola.com, to attract and interact with the target
group directly and make them aware about the unique products more effectively.
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The company‟s target customer primarily consists the youth; the marketing strategy that has hit
the bull‟s-eye with this group. Coffee joints for instance Café Coffee Day and pubs have been
used to promote the brand, these initiatives have performed extremely well. Activities in mega
malls with radio as support media have also been conducted. Clouds 9 has been present at all
foremost college festivals and have tasted success with the free distribution of “Cloud 9” in
colleges and other educational institutions. In addition to everyone who needs energy to enhance
their stamina and concentration to carry on with their daily life they have also targeted club
patrons. The target group consists of an array of consumers, from youngsters preparing for their
exams to a business professional looking for that extra boost of energy at work, and even an
athlete pushing himself to the full extent of his/her stamina and endurance. Cloud 9 has never
given specific directions about the usage; it is left to the consumer to decide the way in which
he/she wants to consume the drink. Consumers mix Cloud 9 with other drinks; this adds to the
taste and heightens the richness and the overall flavor of the drink. It has become popular for
sprucing up regular drinks. But the Company's motto has always encouraged consuming alcohol
responsibly and it has promoted a fun filled yet healthy and responsible lifestyle.

GHPL has ensured that the availability and the reach are high through effective and smart
distribution model. The drinks are obtainable at premium outlet such as various premium outlets
(Café Day Express), Modern trade outlets (Big Bazar, Hypercity, Reliance Fresh, Shop Rite, D-
Mart, Spencer’s, Tata Star Baazar, Spinach, Vishal Mega Mart, Nature Basket, More(ABRL)
and Low Price), multiplexes (Cinemax, Fame, Big Cinema Adlabs, PVR), foremost hookah
parlors (Mist & Myth, Relesor Fast Food , Khangah, Lets Screen Pub, S2Pub, Vapor Lounge,
Marin Center), leading gyms (Leena Mogre’s Gym, Sykz, and Gold’s Gym, including the MIG
Club), in companies (Cadbury, Volkswagon General Motors and Asian Paints) and various other
corporate offices (BPOs & KPOs like Zenta, TCS, Accenture, Sutherland and Syntel, Major
banks like Bank of America and the Dutch Bank, Hotels such as Orchid, Marin Plaza, Regal
Plaza, Peninsula Grand, Unplug, on the Plotter, Cool Water and Shalimar). Cloud 9 is also
offered at major airports, amusement parks, including EsselWorld & Water Kingdom. One can
inquire for Cloud 9 at one of the 80,000 outlets, more than 30,000 wine shops, high-end pubs and
major five-star hotels across the country.

Future Challenges

In two years, GHPL has single-handedly established and then lifted the brand Cloud 9. In this
period Cloud 9 has seen its sales grow. GHPL has planned to further enhance the sales by
introducing new products in the existing product portfolio. It plans to introduce various fruit
juices like Lemon, Orange, Jeera, Pineapple, Mango, Kiwi, Pomegranate and Wild Berry with
Aloe Vera Chunks. A new flavor of Red Grapes with Zing will be added to the existing Green
Apple with Zing, in tin cans of 250 ml. To address the need of growing number of health

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conscious consumers, a sugar free variant of Cloud 9 Lemon Juice, Cloud 9 Orange Juice, and
Cloud 9 Cola will be introduced. Category extensions are being considered under the Cloud 9
umbrella such as Soda, Mineral Water, Fruit Beer with variants, Beer, Pizzeria, and Hot Coffee.
All these products would be 100% natural and devoid of any harmful ingredients, which is the
highlight of Cloud 9 products, and will be in compliance with Cloud 9‟s founding principles.

GHPL aspires that Cloud 9 Cola and all the other products that would be launched in the future,
gain wider acceptance in the market and wants Cloud 9 to grow from strength to strength as a
brand with each passing day. Cloud 9‟s current market share lies at 30%, intending to increase it
in the coming years to over 50%. The turnover in the FY 2008 – 2009 was ` 20 Crore and
increased to ` 60 Crore in the FY 2009-2010. According to the latest quarterly report, the new
products Cloud 9 Cola and Green apple have enjoyed a revenue of ` 5 Crore. Cloud 9 Green
Apple with Zing has been the highest selling product and has created a high demand in the
market. GHPL aims to amplify its turnover and reach the ` 100 Crore mark by next year and in
due course attain a revenue of ` 500 Crore in 2015. They are targeting to reach the milestone of
2,50,000 retail outlets across India in the coming years. GHPL wants to use the profits earned in
these ventures in a means to contribute towards invigorating the economy of India and in the
welfare of its citizens. The company intends to launch all its drinks in cans of 180 ml & 250 ml.

GHPL foresees Indians to support and be part of this initiative and also to energize and empower
India‟s people, its economy, and thereby India as a whole. It aims to consolidate and grow Cloud
9‟s Indian presence, all the while expanding into the overseas market. It envisions launching its
products internationally into the South Asian Subcontinent, Sri Lanka, Europe and the GCC
Countries.

Priyesh wondered how he could ensure that Cloud 9 continues to meet the needs of the
consumers, while handling the mounting competition and growing the business at the same time.
He would be required to deliver both profitability and growth as expected by the market place.
GHPL being a new company has limited resources and fulfilling the expansion plans are some of
the challenges that are left unmet. He finally put down the Annual Report he had been reading
and started to think.

Consider yourself as Mr. Priyesh Ganatra, CMD of GHPL and develop a marketing strategy and
plan for meeting the future challenges and aspirations.

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Exhibits
Exhibit I: Advertising Expanses break up

Advertisement Expenses

Print Media/TV
10%
20% 40% Events

30%
Specialist Media
Vehicle
Others

Exhibit II: Pricing of product

Packs Units / Case MRP/Can

Name & Variant Sizes
Cloud 9 Energy Drink Pomegranate 250 ml 24 90/-
Cloud 9 energy Drink Wild Berry 250 ml 24 75/-
Cloud 9 energy Drink Wild Berry 180 ml 24 40/-
Cloud 9 Energy Drink Premium 250 ml 24 75/-
Cloud 9 Energy Drink Premium 180 ml 24 40/-
Cloud 9 Energy Drink Red Grapes 250 ml 24 75/-
Cloud 9 Green Apple Zing 330 ml 24 25/-
Cloud 9 Cola 180 ml 24 20/-

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Exhibit III: Different SKU’s of product

Name & Variant Sizes

180ml 250ml 330ml 500ml
Cloud 9 Energy Drink 
Pomegranate
Cloud 9 energy Drink Wild Berry   
Cloud 9 Energy Drink Premium   
Cloud 9 Energy Drink Red 
Grapes
Cloud 9 Green Apple Zing 
Cloud 9 Cola   

Exhibit IV: Region-wise sales

Region-Wise Sales

25%
35% North India
East India
30% 10%
South India
West India

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Exhibit V: Product-wise sales –Cloud9

Sales

25%

Soft Drink
75% Energy Drink

Soft Drinks Energy Drink

25% 15%
Caffeenie Free Pomegranate
50% 50% Cola Wild Berry
20% 40%
Green Apple Red Grapes

with Zing Premium

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