Imperium: Prelims

Propose a strategic growth plan for X for the

next five years. Keep it short and simple.

Indian Beverage Soft Drinks Industry

The Indian beverage Software Industry, beverages account for $230 million in the $65 billion
food processing industry in India. In terms of volume, total soft drink (carbonated beverages
and juices) market is estimated at 284 million crates a year ($1billion).91% of these sales are
to the upper middle class, middle class and lower middle class. X is one of the companies in
the sector of fruit drinks of Indian Beverages. X has many competitors from specialising in
nutrition like R, Tto mass producers of Soft drinks as that of V and W.
In evaluating the industry, the environmental factors that are most important are market
size, demographic trends, regulatory factors, technology developments, supplier channels,
as well as consumer habits and social considerations. The market is predominantly urban
(75%) and 25% contribution comes from rural areas.The consumption of aerated beverages
in India has increased from a meagre three servings per person, per annum in 1993 to 14
servings in 2013. Given the sheer weight of Indian population this is huge to reckon with for
the orlds leading food and e erage orporations, e en though the glo al a erage is 94
servings.
Non- Alcoholic drinks can be divided into 3 sectors, Carbonated Drinks, Fruit Drinks and
Functional Drinks. X has its market in fruit Drinks.
The Indian market is one of the fastest growing markets in the Soft drinks Industry. This
accompanied by the growing concern for health and nutrition among the Indian citizens give
positives to the fruit drink segment. Already the fruit drink segment is growing at a faster
rate(30-35%) as compared to the soft drinks industry. X tries to capture the sentiments of
nostalgia of a very large portion of population in India. With higher level of Regulations in
the area of carbonated/ aerated drinks, it gives an added advantage to X to capture the
market segment. The wide range of suppliers makes X available at many places in the offline
as well as online market. Due to greater market growth and increased consumer adoption
due to perceived health and wellness benefits creates a base willingness to pay the price
premium.

Company
X
T

Performance
25 Crores in 2015
fruit juices occupy about 37% market share in
India (orange Juice)
The brand had approximately 6146 Crores of
Sales in financial year 2013 Approximate
market share of 50% in India(Orange Juice)
Data not available

Covers 85% of mango Based drinks

Target Group
Large crowd across all age group (18-75)
Middle age people between the age
group of 30-60
Young people between the age group of
18-30
Middle age people between the age
group of 30-60
Young people between the age group of
18-30

Competitive Position
X places itself as a Niche product, where it tries to drive market share based on memories of
the past. Its target segment hence becomes very narrow and it also charges a high premium
for the same.
As we see X has a very high rate as compared to others. This price premium it believes it can
cover due to the unique and exquisite flavours it offers. Other products though focus more
on health and nutrition to drive customers towards them.

Strategy Map
45
40
35

30

S
R

25

PRICE
T

20
15

10
5
0
-5

10

Number of Products In India

15

20

25