POSITIONING URZZA

LAUNCHING A NEW DRINK

Pranjal Sarin(22BM6JP36) Amrita Mandal(22BM6JP06)

Sayanta Midya(22BM6JP46) Vivekananda Chaudhuri(22BM6JP56)
Mayank Kale(22BM6JP26) Diwakar Babu(22BM6JP16)
INTRODUCTION

Bisleri International launched a new energy drink Urzza in 2014.Urzza did not contain caffeine
and had healthier ingredients that could attract more customers. “Chauhan chairman and
managing director of Bisleri believed that the drink could create an entirely new category in the
functional beverage segment and generate mass appeal”. But Urzza had a few problems which
are discussed below.

PROBLEM STATEMENT
The market position and segmentation of Urzza are not well defined. Energy from energy drinks
comes from sugar, but people perceive that energy comes from the caffeine in other energy
drinks. Urzza doesn't have stimulants such as guarana and taurine present in other energy drinks
such as a red bull. People have the perception that energy drinks should taste like red bull,
which is due to these stimulants. This is an availability heuristic problem. Their pricing is of a
premium energy drink, but they have marketed it for all demographics. Urzza was not launched
in multiple variants. To solve the problems discussed above, we will use STP Strategy. Also, we
will Discuss the pros and cons for Urzza in creating a product category different from energy
drinks that could generate mass appeal. We will also discuss what Urzza should do next to
become sustainable.

SEGMENTATION

Current drink categories in the Beverage market are as below

Carbonated Drinks

Alcoholic Fruit Based Drinks

Soft Drinks Energy Drinks
Non Alcoholic Bottled Water
Hot Beverages Sports Drinks
Functional Drinks
Ready to Drink
Tea/Coffee

Fortified Water

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VALUE BASED SEGMENTATION

Who drink energy drinks simply for the experience and the taste

Strength Athletes and fitness enthusiasts who use energy drinks as a pre-workout
enhancement drink to increase energy

Cognitive Late-night corporate workers and students who believe caffeine is a

capability stimulant use energy drinks to their minds activated for late-night work
and projects

Pleasure Those who drink energy drinks simply for the experience and the taste

TARGETING
Urzza should target the consumers who are Health Conscious seeking value for money. It should
target all age groups (family- friendly) because of its unique health benefits and also it has got
favorable perception as an energy-boosting drink as compared to other energy drinks so
athletes can be targeted.

Urzza should target kiosks for school, college, and office goers to increase their other
distribution channels. Along with this, it should target supermarkets, convenience stores, and
drug stores (because it is devoid of caffeine).

POSITIONING
•Creating a favorable & distinctive image (or position) for the product in the mind of the
consumer

•To Develop a conducive position, the brand requires optimal. Points-of-parity (POPs) and
Points-of-difference (PODs)

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Perceptual map of URZZA
Strong Caffeine

Red
Bull
Coke
Monstar
Cloud Zero Tzinga
9

Pepsi
Next

No Sugar/ High Sugar

Healthy

URZAA

No Caffeine

POSITIONING PROS CONS

Healthy and 1. Usage of Vit B & C, tartaric acid instead Already established brands
Power drink of guarana & taurine makes a high appeal like Red bull has got a first
to health-conscious consumers and is mover advantage and
immune to regulations applicable to Negative perception in this
caffeinated drinks. segment makes it hard to
position as a healthy drink.
2. Other competing products taste bad,
and the price is also higher.

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 Tasty Sports 1. Favourable perception as an energy- 1. Limited market size of INR
Drink boosting drink as compared to energy 2 billion as opposed to the
(Low sugar) drinks energy drink market at INR 7
billion
2. Higher growth rate of the market
segment at 30% p.a. (as opposed to 20% 2. Low scope of gaining
p.a. for energy drinks) significant market share due
to first mover advantage of
less costly competing
products
Family-friendly 1. Low penetration, low per capita 1. Loses some appeal to the
Energy Booster consumption so we can cater to people of youth, its most significant
(No caffeine) all ages target audience

2. Inherently good perception by virtue of 2. Higher priced than most

its positioning as a family drink drinks in the market
segment
3. Potentially a unique product within its
segment; creating a niche within the
segment
Non-caffeinated 1. We would have an advantage here 1. Due to being positioned as
Budget Energy because of our relatively lower prices than a 'Budget drink', the parent
drink other energy drinks. By introducing the name 'Bisleri' might lose
perception of 'Budget drink', we would be some market share from the
politely emphasizing to the rural audience ultra-rich/rich audience
of the comparatively lower price of our
product while they search for an energy 2. Some initial efforts might
drink. be involved in correcting the
misconception of caffeine
2. We would also be correcting the requirement for the 'energy
misconception of caffeine requirement for component' in energy drinks
the 'energy component' in energy drinks.
This would also aid in being perceived as a 3. Possibility of Some errors
'healthier drink' to the rural parents while in determining the possible
buying an energy drink for their sports- market size of the rural
enthusiastic children segment due to being an
untapped one

TARGET VOLUME
It would be difficult for Urzza to achieve this volume scale as this target would require it to
capture ~50% of the market share

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 Years 2011 2012 2013 2014 2015
Energy Drink (Billion $) 5 6.3 7.8 9.8 12.2
Sports Drink (Billion $) 2 2.5 3.1 3.9 4.9
Total (Billion $) 7.00 8.75 10.94 13.67 17.09

Market Size (2011-2015)

18
16
4.9
14
12 3.9
10
3.1
8
2.5
6 2 12.2
9.8
4 7.8
6.3
2 5

Energy Drink (Billion $) Sports Drink (Billion $)

Distribution Channels (2012)

30%

57%
13%

Traditional retail Modern retail New Channels

Break-down of Distribution channels for energy drinks we are targeting:

Supermarkets/hypermarkets
Convenience stores
Drug stores
Mass merchandisers, kiosks

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WAY FORWARD

1. Sports Celebrity Endorsements highlighting the health benefits

2. Line extension by including new flavors like watermelon and litchi.
3. Diversify the product into rural markets by introducing a new variant with different pack
sizes and price points (35 Rs for 200 ml)
4. Contemporary challenge. People prefer caffeinated drinks now. We should try to include
“non-caffeinated drinks’’ in our tagline to spread awareness.
5. Navigating the cash challenge of brand creation by giving perks/incentives/merchandise
to the employees to meet Urzza sales targets.

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