GREEN OX

Group 1
1501068Aniket Phadnis
1501074Aroop Sanyal
1501100Sabyasachi Sahu
1501103Saurabh Bose
1501104Nishant Shah
1501108Sumitro Ghosh

Introduction & Overview

Green Ox To Get You Off The Blox!
Sports Drink Enhances Athletic
Performance, Refreshing, Health
Sports Drink Enhances Athletic
Benefits
Performance, Refreshing, Health
Benefits
Growing industry
Growing industry
Two Major Players Croc-Ade in
sports beverage segment. V7 in
Two Major Players Croc-Ade in
antioxidant segment.
sports beverage segment. V7 in
antioxidant segment.
Green Ox Advantage: Sports
Beverage + Antioxidants
Green Ox Advantage: Sports
Beverage + Antioxidants
Competition: Moving into
markets captured by Croc-Ade &
Competition: Moving into
V7
markets captured by Croc-Ade &

Competitor Analysis
Attributes/
Beverages

Green Ox

Croc-Ade

Sport-Ade

Powerboost

V7

Anti-oxidant pills

Energy
Enhancing

Yes

Yes

Yes

Yes

No

No

Refreshing

Yes

Yes

Yes

Yes

No

No

Health Benefits

Yes

No

No

No

Yes

Yes

Retailer Price
($)

0.79

0.68

0.62

Established

No

Yes

Yes

Yes

Yes

Yes

Significant
growth
at Retail stores

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

No

No

Significant
growth at club
stores

SWOT Analysis
Strengths
USP: Mix of High Performance, Health Benefits
& Refreshing Attribute
Upscale Image because of Croc-Ades market
price
Positive impression of antioxidants

Weakness
Club Stores reluctant to give shelf space to
non-established products
Price on the higher side
Low profit margin vis-a-vis direct competition

Green Ox

Opportunities
Antioxidant
Consumption
Change
in
Preference
Fluctuating Demand of Competitor Products
Lack of V7s marketing campaign
No. of women considering themselves
athletic has quadrupled

Threats
70% of consumers are brand loyal over
flavour loyal
Less no. of flavours, threat of well established
brands in terms of preference of flavours
V7s exclusivity in terms of a healthy
beverage containing antioxidants

Strength

1. USP: Palmer Jackson has devised a method to include

antioxidants in a sports beverage
2. Is able to deliver a combination of enhanced athletic
performance, refreshing attribute along with health
benefits
3. Croc-Ade sells at $0.79. This has helped built an upscale
image of sports beverages which we can match

Weakness

1. Club Stores reluctant to give shelf space to non-established

products. Green Ox being a new product, it has not built up
a track record of at least 2 to 3 years
2. Price needs to be on the higher side considering the unit
cost to manufacturer and margins to retailers and the
manufacturer itself
3. Margins vis-a-vis its direct competition is on the lower side

Opportunities

1. Visible change in antioxidant preference. This can be seen

from the growth of V7 at the rate of 60% over two years.
Consumption in Antioxidant pills has also grown at the rate
of 25% over the same period
2. Fluctuating demand in competitor products
3. Lack of a robust marketing campaign by V7 is clearly
evident. Although it contains antioxidants, V7 is currently
not advertising the same
4. No. of women considering themselves as athletic has
quadrupled

Threats

1. 70% of consumers are brand loyal rather than being flavor

loyal. This will hamper acceptability in the introductory
stage.
2. Lesser no. of flavours in its product portfolio becomes a
threat as the established players have already
consolidated the market when it comes to flavours
3. V7s exclusivity in terms of an all round product could go
against it for lack of a specified function

Market Segmentation

Demographic
Segment

Age
Income
Gender
Child Bearing

Psychographic Behavioral
Segment
Segments
Ideals Oriented
Achievement
Oriented
Self-Expression
Oriented

Store
preferences
Pricing
Brand Loyalty
Flavour
preferences

Market Segmentation Demographic Segment

Demograph
ic Segment

Pros

Age

Gender

Income

Cons

People with age > 40 are more likely

to purchase
Anti-oxidant health drink preferred by
higher age group for health benefits

People with age <40 prefer to

follow their brand

Both sexes favor the product; women

little more inclined
No. of women athletes have
increased thrice

Unclear distinction between

male and female consumers

People with middle and higher

income group are likely to buy
(Income >$35K)

Lower income unlikely to buy

due to high price

Market Segmentation Psychographic Segment

Psychographi
c Segment

Pros

Ideals Oriented
(Thinkers &
Believers)

Achievement
Oriented
(Strivers &
Achievers)

Self-Expression
Oriented
(Experiences &
Makers)

Cons

Likely to favor the product

Thinkers are educated, open to
consider new ideas, pragmatic and
value for money

Strivers are active, ostentatious

and impulsive
Willing to buy at higher price

Experiencers are young and

enthusiastic about new products
Sporty and fashionable

Believers are conservative

with concrete belief
Stick to established brand and
loyal customers
Achievers are conventional
people
Favor established and prestige
products
Makers are skeptical to buy
new products.
Basic needs and do not value
luxury.

Market Segmentation Behavioural Segment

Behavioural
Segment

Pros

Store
Preferences

Pricing

Brand Loyalty

Flavor
Preference

Retail outlets are the highest

distribution channel
New flavors launched will attract
30% of consumers
Green Ox can substitute vegetable
health drink

Cons

Clubs do not prefer nonestablished brands

Expensive product will not
attract many customers
Most of the consumers remain
loyal to their brands

Targeting
Income >
35k per
month
Age>=40
Target
segmentati
on

Thinkers,
Strivers
&
Experienc
ers

1. Age>=40:
Survey shows a higher age group are
more favorable to consume Green-Ox
2. Income>=35k per month: GreenOx branded as a premium energy drink
3. Thinkers, Strivers &
Experiencers:
Thinkers tend to prefer antioxidants and
electrolytes while Strivers give priority to
high prices. Experiencers are open to
trying new products
4.Flavours: Initial launch of YellowKnife
and Alberta Bound. 34% of sports
beverage drinkers prefer YellowKnife
while 50% of V7 consumers prefer
Alberta Bound. Other flavors can be
introduced in the growth stage as flavour
preference in all categories reflects a
substantial percentage of customers

Measures of Segment Attractiveness

Measurabili
ty

Potential customers over the age of 40% have a

favorability rate of 85%
High income group has a favorability proportion of
62%

Accessibility

High potential to enter into the market of Croc-Ade

by providing higher health benefits at the same
price. Vegetable Juice markets also can be tapped
by aggressive marketing

Substantiali
ty

The higher income groups are stable

High emphasis on energy drinks. Priority on health
No. of woman athletes is on the rise

Actionabilit
y

Aggressive marketing campaigns can be devised to

tap into the V7 markets
High retail margins to promote sales

Positioning Statement
To

Fitness oriented individuals over

40 years in the middle to high
income segment

Green Ox Sport Beverage with Antioxidants

is...
That...

Enhances athletic ability with

added health benefits

Because. Only product to have antioxidants

in the sports beverage line
..

Positioning

Enhances Athletic Ability

Brand Perception

Antioxidant
Pills

Green ox
PowerBoost

Croc-Ade

Green Ox should position

Green
should
position
itselfOx
having
a brand
itself
having
a
brand
perception that is higher
perception
that isinhigher
than its peers
terms of
than
its
peers
in
terms
of
enhancing athletic ability
enhancing athletic ability

Sport-Ade

Health Perception
Green Ox

V7

High
Medium
Low

V7
Refreshing

Green Ox with the presence

Green
Ox with the
presence
of antioxidants
should
of position
antioxidants
itselfshould
as a brand that
position
itself
as
a brand
that
has some health
benefits
haswhen
some
health benefits
compared
to V7.
when compared to V7.

Marketing Mix The 4 Ps

Product

Antioxidant
Energy
Refreshing
Flavoured
Flavour specific labels
Easy to use Sports Bottle

Price
Recommended price at
$0.79 to target high
income market
40% margin as incentive
to retailers, higher than
32% of Croc-Ade
180% manufacturer
margin, just about market
average

Promotion

Place

Flavour Specific Labels

and Introductory
Advertisement
Campaigns
Procurement of Shelf
Space at Retail and Club
Stores

Traditional Grocery and

Retail Stores
Short term to medium
term target to move into
club stores

Marketing Mix Product & Promotion

Vit
E

Anti
O2
Green
Green Ox
Ox Alberta
Alberta Bound
Bound

Energy
Refreshin
g
Green
Ox
YellowKnife

Product Benefits

Advertising Campaign and

Shelf Space

Marketing Mix Place

Initial Channel
Retail Stores and traditional
grocery Stores. Bulk of Sports
Beverages are sold via this
channel

Immediate and Short Term Channels

Short to Medium Term

Movement Diversify into Club
Stores by applying for Shelf
Space and Visibility. Also,
larger number of high income
customers are likely to use
club stores.
Club Stores growing at a
Significant Rate
Should be financed by profits

Marketing Mix Pricing

Total expected revenue for Green Ox (in $ millions)

5.69

14.00

4.85

12.00
10.00
8.00

4.85

5.00

4.02

3.70

3.17

4.00
3.00

6.00

2.00

4.00
2.00

1.00

0.00

0.00

1.1900000000000004
0.99

Expected market siz e in millions

3.73
5.66
Total
expec ted revenue for manufacturer
in $ millions

0.79
10.16

0.59
0.39000000000000012
11.55
13.23

Price Point

Monthly Profits for Manufacturer (in million $)

6.00
5.00
4.00

3.00
Revenue for Each Price Point
2.00
1.00
0.00
$0.20

$0.40

$0.60

$0.80

$1.00

Price Point

$1.20

5.69

6.00

$1.40

Re v e n u e (in M illio n s )

To ta l S i z e (i n m i l l i o n pe o pl e )

Sweet Spot

4.02

3.70

3.17

$0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 $1.10 $1.20 $1.30

$0.79 ~ Recommended
Price
$0.56 ~ Manufacturer
Price
Expected Market Size
~ 10.16M Population
Expected Market Share
~ $ 770.53M
Green Ox Margin ~ 180%
Retail Margin ~40%
Total Expected Revenue
for Green Ox ~ $5.69M
Total Expected Profits
for Manufacturer ~
$29.26M

Price Point

Monthly Profits for Retailers (in million $)

2.34
1.96
1.58
1.27

0.41

$0.20

$0.40

$0.60

$0.80

$1.00

Pric e Point

$1.20

$1.40

The Way Forward

1.
1. Introduction
Introduction of
of two
two
flavors
flavors only
only
YellowKnife
YellowKnife and
and
Alberta
Alberta Bound
Bound
2.
2. Outlets
Outlets limited
limited to
to
retailers
in
the
initial
retailers in the initial
stages
stages
3.
3. Low
Low retail
retail margin
margin
during
during introduction
introduction
stage
stage to
to tap
tap into
into
existing
customer
existing customer
base
base
4.
4. Limiting
Limiting the
the product
product
to
to higher
higher age
age groups
groups
and
and income
income groups
groups

1.
1. Introduction
Introduction of
of new
new
flavors
flavors such
such as
as
Jasper
Mountain
Jasper Mountain and
and
Whistler
Whistler
2.
2. Outlets
Outlets will
will migrate
migrate
to
Club
stores
to Club stores for
for
greater
greater sales
sales and
and
better
market
better market share
share
3.
3. Has
Has potential
potential to
to
increase
increase margins
margins
once
customer
once customer base
base
is
is established
established
4.
Can
4. Can enter
enter into
into
newer
newer target
target
markets
markets

Thank You