SPJ GIP Singapore

Expansion Strategy for Manpasand Beverages in UAE

May 28, 2019
We are going to talk about
1. Introduction to Manpasand Beverages
2. Strategic goal to enter into new market
3. PESTLE analysis
4. SWOT analysis
5. Defining the business & market analysis
6. Generic strategy
7. GAP analysis
8. STP Analysis
9. Price analysis
10. Distribution channel
11. Product channel
12. Balance scorecard
13. Recommended strategies
14. Summary & conclusion

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Hello!
We are Group # 3
Name Company Name Designation
Divya Rathod BDO India LLP Senior Associate
Pratyaksh Consultant – Application
CGI Inc. Pvt Ltd
Praveen Development
Pravin
Sitel India Pvt Ltd Manager – Financial Reporting
Gadade
Ritesh Gupta Sulzer India Pvt Ltd Head of Sales – Mixpac, APS India
Satyan Soni Mastek Ltd Software Specialist
Spardha One97 Communication Asst. Brand Manager – Strategic
Kudalkar Pvt Ltd | Paytm Alliances

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Manpasand Beverages (Manpasand) is a
Baroda based company which operates
as a fruit drink manufacturing company
in India.
The company offers mango based fruit
drink under the Mango Sip brand; fruit
drinks and carbonated fruit drinks under
the Fruits Up brand; and fruit drinks with
energy replenishing qualities under the
Manpasand ORS brand.
From being a merely mango pulp drink
maker under the flagship brand 'Mango
Sip' Manpasand has been enhancing its
product portfolio.
Manpasand is targeting a revenue of
Rs.1, 000-1,200 crore financial year
2019-20 and Rs.5, 000 crore by 2022.

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Manpasand’s-MangoSip

4
Largest Beverage Player in India
948 Cr
Revenue by INR

Strong Presence in Major States of

178EBITDA
Cr
India

1 Listed Company on NSE & BSE

Command’s Market Leadership

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 Strategic Goal To Enter Into New Market
The Three Golden Rules

Be Global. Be Available. Be Agile.

Expanded the presence
with a focus on penetration
in larger, fast-developing
countries – such as UAE. All
having a consistent brand
offer which brings
economies of scale in
production and marketing.
There’s a new centre of
gravity for brands: their
resources and focus are
shifting to emerging regions
Build the best distribution
networks that reach the
most remote shoppers in
rural areas of countries.
Make the product
accessible to new
consumer segments and
through new and alternative
channels; often combining
traditional, rural and digital
Understand and respond
quickly to local needs,
innovating product content
and packaging to appeal to
different preferences,
tastes, lifestyles, values,
traditions, and
demographics. Adapt their
portfolio to address the
spectrum of consumers
from those with lower
incomes to those ready for a
premium offer.

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 Quantifying to
Enter UAE Market
‘’Seeking Global Pasand’’
Making UAE taste the King of
Indian Fruit.

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9
 Quotable Quotes
“Innovation is crucial for growing a brand’s footprint”

“Emerging markets are responsible for 98% growth of

the growing brands”

“All brands have opportunities to recruit new customers”

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 Economical Social
Political
• Ongoing tension in gulf
• Implication of exchange rate
fluctuations
• Health conscious customer

region • Add point on urban

• Price control by government
• Improving relationship with
India
• 2017 India was 2nd largest
trade partner with 7.9% of total
share
• Introduction of VAT
• Consumer spending
expected: 261 Bn USD by
2021
• Consumer spending
accounts: 47.2% of GDP
• Non-oil GDP at constant
price grew @2.5% in 2017
population
• Cosmopolitan and
international culture
• Consumer expenditure per
household: $ 103000 / yr
• 19% of household
spending: food products

Pestle
Analysis
Technological
• High investment in
technology for medical,
public transport,
• 100% smart phone
penetration and 70% social
media adoption
• UAE has started many
initiatives in e-governance,
smart city and artificial
intelligence
Legal Environmental
• High focus on sustainability
• Laws are more biased
towards local situation
• Stricter measures on
pollution control and
• The legal system in the disposal
UAE is based both on civil
code principles and on the
• Limited natural resources
Islamic Shari'ah pertaining to food industry
• Lack of transparency
• Stricter control on quality
and norms for food
products
SWOT Analysis (Organization)

Strengths Weakness
Strong growth 38% 3 Yr CAGR Brand Perception
Debt Free Company
Unique product portfolio
Entrepreneurial approach
S W Management Style
No existence on e-commerce
Advertisements
Widespread manufacturing Distribution high margins to
footprint distributors
Presence in India

Opportunities Threats

O T
Untapped domestic/export Margin fluctuation
market
Competitor market
Packaging
Raw material suppliers
Institutional sales
Demographic of target market
Health awareness
Substitute products
Global market

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 Defining the business and market analysis formatting
RIVALARY AMONG EXISTING THREAT OF NEW ENTRANTS
COMPETITORS • Barriers to entry – medium
• Number of competitors – 10+ 5
THREAT OF • Economies to scale - high
• Diverse competition – dairy, juice, • Capital requirements – very high
bakery NEW
ENTRANTS • Government policies – strict food
• High industry concentration – control
GCC focused • Access to distribution channels -
• Industry growth – 5% + costly
• Brand loyalty - low
• Barriers to exit - high

2 1 4
BARGAINING RIVALARY BARGAINING
POWER OF POWER OF
AMONG
SUPPLIER BUYERS
EXISTING
BARGAINING POWER OF SUPPLIERS COMPETITORS
• Number and size of supplier - high BARGAINING POWER OF BUYERS
• Uniqueness of each supplier ‘s product • Number of customers - diverse
– highly unique • Size of each customer order –
• Focal company’s ability to substitute - pack size
medium
T HREAT OF SUBSTITUTE PRODUCT
• Differences between competitors
- low
• Number of substitute product available • Price sensitivity - medium
-4 3 • Buyers ability to substitute – very
• Buyer propensity to substitute - high THREAT OF high
• Relative price performance of substitute SUBSTITUTE • Buyers information availability -
– high performance at par price PRODUCT high
• Perceived level of product
differentiation - medium
• Switching cost - low
 Bargaining power of
Threat of new Bargaining power of
buyers
01 entrants 02 (Low to medium 03 suppliers
(Medium pressure) (Low pressure)
pressure)
• Low entry barrier business for • High bargaining power with distribution • High Capex demand from reputed
suppliers
diversifying players supermarkets and hypermarkets.
• Established players with economies of Switching costs for retailers are low • Selected suppliers for quality flavors,
colors and fruit pulp
scale ,established network of • The individual buyer puts no pressure
distribution channels on Manpasand Beverages • Packaging material like TetraPak has
monopolistic position
• Investment in brand building and • Threat from private labels by
advertisement is critical success factor hypermarkets
• High entry barriers for entirely new
companies
 Threat to substitute
04 products
(Medium to high
pressure)
• There are many kinds of energy
drinks/soda/juice products in the
market. These are pulp, nectar or
flavor based
• Competitive landscape will be defined
by product differentiation.
• Juice drinks (up to 24%) continues to
decline, so category open for
innovation. Cold Press and Zero
added sugar category is emerging fast
Rivalry among
05 existing firms – High
Pressure
• Beverage industry in the UAE is extremely
competitive with tough regulation of the
industry. Many players are diversified in
Juice, Dairy and Bakery industry. High fixed
costs and high barriers to exit
• Some of the leading players operating in the
market are as following:
o Almarai, Al Rabie, Binzagar Coro, Jumbo,
Caser, Arrow Juice, Union Beverages
Factory, Gulf Union, Al Safi Danone, Del-
Monte
• Although the diversity and differentiation of
the functional drinks are high which
decreases rivalry, the extensive
advertisement expenditure simultaneously
amplifies rivalry.
• With high rivalry among the major players and
medium rivalry among the smaller player,
overall rivalry is evaluated as moderate to
high
Generic strategy Formatting
+ Visual +
font

Refreshing and Affordable Drink Innovation and Authentic

cost leadership and smaller pack size
Product Differentiation and Purity
Manpasand should leverage its existing value chain to
enter new market. Strong network of 09 Manpasand Beverages Ltd Mango Sip must be
manufacturing plant in India. Specially the Vadodara positioned as pure Mango pulp-based brand to youth
plant with proximity to Mumbai / Kandla port. Having customers at affordable price point. Current available
scale of economy Manpasand Beverages Ltd must packing in price point of AED 0.50 & 1 to be replicated
leverage its sourcing to maintain sustainable long- in UAE. We suggest stock point in UAE FTZ and
term price stability. distribution partnership with local player. Added
flexibility in ordering pattern and broader portfolio of
Manpasand Beverages Ltd is very successful in India products to increase visibility.
creating broad distribution network to reach modern
trade, tier 2/3 cities. Manpasand Beverages Ltd is
successful in creating value for distributors by passing
on extra margins. They should be leveraging same
learning and strength to enter newer market of UAE
(GCC to follow)
 GAP analysis

Refreshing Supply Chain and

Market & Customer Pricing
Current Base - India
Beverages
- India
Logistics
- India - India

New
Introduce Re- Distributor’s
Gap Explore
untapped
Refreshing evaluate & Retailer’s
& Natural Pricing channel
Analysis UAE Market
Beverages Strategy developme
nt

Refreshing Supply Chain and

Market & Customer Pricing
Future Base - UAE
Beverages
- UAE
Logistics
- UAE - UAE
 STP Analysis
01 02

Primary
• A packed Fruit juice in attractive
• Kids, active, playful and fun-loving
• Kids of Age Group 4-12 yrs. and resalable packages of various
consumers with a high demand for energy
• Convenience Seekers sizes for Convenience Seekers.
• Sports & Fitness
• Food Safety Conscious • Highly loaded with pureness and
• Price Sensitive
• Price Sensitive safety of juice and moderately
• Convenience Seekers
• Sports & Fitness loaded with shelf life for Food
• Health Conscious
• Youth– Experimental & more Safety Consumers.
Secondary
buying power • Higher portion size, and
• Travel Industry(Airlines, Railways)
• Housewives, Elderly People replenished fruit juice
• Movie Theaters, Malls, Amusement Parks
concentration dedicated for Price
• Schools, Colleges, Hotels, Restaurant
Sensitive Consumers.

Segmentation Targeting Positioning

 1.2% 1.2%
1.1%

0.7%
0.4%
0.3%
Noodles
CSDs Salty snacks Juices Chips Breakfast Biscuits Tea Coffee
cereals

-1.7%

Given the shift in consumer preferences and lifestyles, carbonated beverages

are expected to lose market share to healthier beverages.
Price analysis Selected targeted pricing point 125 & 200ml

SKU ML/ Mango

Price Point- INR Sun-Top KDD Lacnor Almarai Nadec Caprisun Delmonte Paperboat
Price Sip

80-100 5-6 V X X X X X X X X
125 7-10 V V X V X X X X X
160 10-12 V X X X X X X X X
180-200 14-17 V X V X V V V X V

SKU ML/ Price Point- AED Mango

Sun-Top KDD Lacnor Almarai Nadec Caprisun Delmonte Paperboat
Price (INR 17) Sip

80-100 0.3 0.3 X X X X X X X X

125 0.50 0.50 0.75 X 2.10 X X X X X
160 0.65 0.65 X X X X X X X X
180-200 0.90 0.90 X 1.20 X 1.25 1.30 1.40 X 2.70

Pack type – Tetrapak, Pet Bottle

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Distribution channel

Hyper
market/
Super market

Institutional
Sales

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Product Channel
•Sourced from India,
Supplier of Raw
Low cost producing
Material
countries

Manufacturer •Production in India

•For storage purposes. No

Wholesaler/ ownership. Only low cost
Rented
seasonal renting as per
Warehouse
demand

Retailer Hypermarket/Supermarket

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 Balance scorecard

FINANCIAL PROSPECTIVE CUSTOMER PERSPECTIVE

Refreshing and refreshing fruit drink
Increase share holder value
Innovative and value brand
2000 Cr company by 2022
Appropriate assortment of products
Grow margins above 20%
Rated in top 3 brands

INTERNAL PROCESS PROSPECTIVE LEARNING/GROWTH PERSPECTIVE

Working capital and inventory Recruit and retain talent
Low cost production Invest in infrastructure
Efficient distribution High employee ownership and
performance culture

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 • Glass bottle – consumers recognize the shape and
size of our bottle more than any other ready-to-drink
tea or Juice Drink brand. A glass bottle is also seen BELIEF UNEXPECTED DELIGHTS MAKE LIFE GREAT
as more premium than PET.
• Only Mango Sip can offer a unique consumption
experience – from hearing the pop of the cap, to INVENTIVE PLAYFUL CULTURAL
reading the “Real Fact”, to the broad variety of great-
tasting flavor combinations made from the Best Stuff BEHAVIOR
We never take
on Earth. Mango Sip has the most unique personality PILLARS Delightfully Having a voice
ourselves too
creative. in culture.
within our competitive set. seriously.

Mango Sip PERSONIFIED:

Brand Personality and Voice: PERSONA quirky humble passionate witty
• With over 40 years of heritage, Mango Sip has stayed
true to who we are at heart: a fun brand that is quirky,
positive, flavorful and playful.
The good stuff in life is the playful stuff, the
• We are a glass-half-full, humble, and fun-loving brand
that tries not to take anything too seriously. GOOD inventive “who ever thought of this!” stuff. This is
STUFF the stuff that culture pays attention to, that makes
the world we live in more engaging and delightful.
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Recommended Strategies

To refresh the world and to inspire moments of happiness and

optimism

To create value and make a difference in short run.

•
• Company plans to utilize social media to promote its products.
SHORT
• Tie up with existing FMCG brand to leverage distribution. Replicate experience of Parle partnership TERM
• In addition, the company can open an online shop in the market network for "Manpasand
Beverages". The rise of internet users will be easier for company to introduce "Manpasand
Beverages".
• Company can focus on Product differentiation strategy. Implementation of this strategy can be
carried out by the company by making a variety of products that have improvised characteristic and
more value in the eyes of consumers. For E. g. Company can highlight the value of fruits that
characterizes India. By combining new flavors into the juice, the company will provide a new
experience for consumers. Determination of new flavors certainly cannot be marketed as such. To
realize it, the company can collaborate with universities which have departments related to food and
beverages in determining the composition and nutritional value in the right amount for the content of
the product.

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Recommended Strategies

Create footprints
• Sales : Organic growth ahead of market and incremental growth through new investments
• Profit: Grow operating income at a CAGR (Compound Annual Growth Rate) mid single-digit or
above- Industry benchmark or India benchmark of Manpasand MEDIUM
• People: Be a great place to work where people are inspired to be the best they can be – How do TERM
you measure this?
• Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy
people's desires and needs. – Line up the portfolio with timeline and target market and sales
• Partners: Nurture a winning network of customers and suppliers, together we create mutual,
enduring value.
• In Medium Term company plans that all the bottling partners work closely with their customers
such as convenience stores, grocery stores, movie theaters and street vendors to create and use
localized strategies developed in partnership with the Company.
• As we know that rising logistics costs are squeezing the food and beverage industry. With the
increased cost of moving goods, food and beverage companies are being forced to increase the
price of their products, Manpasand Beverages plan to turn into supply chain design to gain a
complete end-to-end view of their supply chain networks to uncover inefficiencies and
optimize for significant improvement in cost, service, and risk.

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Recommended Strategies

Five years plan

• Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
• Productivity: Be a highly effective, lean and fast-moving organization. LONG
• Accelerate sustainability management and contribution to local societies.
• The main objectives for the Manpasand Beverages are to be globally known as a business that
TERM
conducts business responsibility ethically and to accelerate sustainable growth to
operate in tomorrow's world. By having these objectives, it forms the foundation for companies in the
decision making process.
• The Manpasand Beverages aims to be globally known, they could do this by targeting
different areas across the globe with different products, gaining their brand name and
popularity.

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Thank you!
Any questions?

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MARKET TRENDS Revised

Trend toward Refreshing Refreshing living

eating, consuming more lifestyles becoming
natural, organic products increasingly popular
in the US

Green juice a day Women 18-34 more Increased number of

mentality likely to participate in Refreshing beverage
juice cleanses products
 TARGET MARKET
Our target segment is undifferentiating marketing basically we divide out target market into two sub groups.

1. Primary market
 CHILDREN
 TEENS
 Youth
 Working people
 Elder people

2. Secondary market
 Industries (Airline, Railways, Education Industries Etc)
 Local and individual markets
 Restaurants, movie theaters, shopping malls
KEY POINT

Life style User Status:

Modern life style. People who Potential and regular
would like to try out new product. customers

Availability: Usage rates:

It is available in all cities. Reasonable.
Special Location: Stations, Malls,
Airports, Superstores. Loyalty status:
Medium to strong.

Attitude toward the product.

Benefits:
Confident and positive.
Special discount for our wholesalers
and distributers.
24 hours availability of our services.
RE-POSITIONING STATEMENT
Brand strategy is one of the main marketing strategy that’s make the
difference of image and product to make value place in mind of the targeted
customer.
Manpasand beverages comes up with a different flavor like (Fruits ups -
Pine apple, orange, mix flavor etc.) which will meet our target population. We
also provide pure hygienic juice with zero% calories with excellent sources to
equally celebrate their health benefit.

Tagline:
Benefits: Healthier and refreshment
Target Group: lower, Middle, Upper Income households and food service
sector for example restaurants
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PROMOTION

“Before promotion we will try to identify correct target market and after that we will
try to communicate to them effectively. We will be promoting our product through many
different mediums like;

1. Uses of innovative campaign e.g. Free trials

2. Bill boards Advertisement
3. Electronic media (Television commercial)
4. Social media
1.Uses of innovative campaign e.g. Free trials : We doing brand
activities to aware customer and give them a free trial for drink it.

2.Bill boards Advertisement: Company attracts their customer through

bill boards in main cities and popular areas or places to make aware and attract
the people to our product.

3.Electronic media (Television commercial): give adds on different

TV channel and on different time. Our management also keep in mind that what
type of customer they attract and what time they sit before TV. Company use to
give adds on entertainment or News channels to advertise the mango juice.

4.Social media: company also uses Facebook, Instagram, and Twitter to

advertise the Product.
https://www.imagesretailme.com/2017/05/16/latest-
news/kantar-amrb-reveals-new-spirit-ramadan/

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