Hector Beverages is a new entrant into the energy drinks market facing a stiff competition from established players like Red Bull, Coca Cola and Pepsi. Established close to 2 years ago by four individuals, Hector Beverages is growing at a remarkable pace with its new product Tzinga being able to garner considerable market share in this competitive space.
It would be interesting to understand various marketing strategies used by the company to achieve significant growth in such a short time interval.
Comparative Study Of The Popular Energy Drinks
Positioning:
Tzinga has been positioned as an energy drink that revitalizes and refreshes. The tagline ‘Wake Up!’ clearly highlights the unique proposition of Tzinga to help you keep awake during studies, monotonous work, late night movies and matches etc. The unique taste of the drink containing lemon, ginseng, guarana and no artificial flavours also creates a perception of healthy drink among the consumers. A typical Tzinga consumer is irreverent, witty and extremely confident of himself or herself and in the age group of 18-25 years.
Promotional Strategies:
Hector Beverages till recently has relied on Word of Mouth promotion for its product Tzinga and it has worked out pretty well for them. Tzinga has been launched in Metros and select Tier I cities only and has created its own loyal customer base through WOM Marketing.
Recently, they also launched a TVC for Tzinga that highlights their unique value proposition and thereby effectively reaching out to their core target group all over the country. The TVC has a student and a corporate worker fighting off sleep with Tzinga. The digital strategy includes a network of people who connect with the brand and help them activate it online, on Twitter and Facebook mostly.
Pricing:
One of the biggest differentiating factor for Tzinga has been its highly competitive pricing, Rs 20 for a 200ml pack; a price tag that is a full Rs 50 less than the general asking price for even the cheaper brands in the category. A 250 ml can of market leader Red Bull on the other hand, costs Rs 95.
Packaging
The low pricing is a result of what Tzinga considers genuine product and packaging innovation: a doypack instead of the usual metal can or glass. The self image of the product is highlighted through this unique packaging which is attractive and easier to handle at the same time.
Future Plans
The company plans to triple its production levels currently at a million drinks per month through the course of 2014. It is opting for a two pronged distribution strategy, high touch i.e zero wholesale, high awareness and a keen tracking of individual outlets. It also plans on strong POSM (point-of-sale marketing) deployment, coupled with sales teams armed with tablets with a customized app, to ensure information flow is flawless across the system.
Investments
Hector Beverages, based out of Delhi-NCR whose primary product is the drink brand Tzinga, has raised $8 million (about Rs 44 crore) in a second round of funding in 2013. Sequoia Capital has led the round with $5 million (about Rs 27 crore) investment, while existing investors — NR Narayana Murthy’s Catamaran Investment and FootPrint Ventures — have put in the remaining amount of $3 million.
By Tarun Gupta
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