Client was approached by one of the major non-alcoholic soft drinks company to take over one of their franchised bottling plant. Hence, the client wanted us to conduct a market feasibility study to understand the potential for soft drink brands served in target districts.
The sub-objectives of the project were:
- Mapping the current potential of the market
- Extracting insights about target brands, most selling pack types and sizes
- Evaluating distributors in terms of financial standing and reach
- Capturing retailer & distributor inputs on potential of target products
- We approached the problem in terms of identifying the target flavor/category size and share of various brands in the target districts.
- We conducted retailer & distributor surveys to map the potential size of the market and extracted insights about target brands, most selling pack types & sizes, promotion & incentives and trade terms.
- Retailers were covered across formats like grocery/kirana stores, eateries (restaurants & take-aways), railways platform counters and more.
- Distributors were evaluated in terms of market reach, turnover and financial standing.
- We followed a top-down approach where we looked at the whole soft drinks market at a country level and then moved to potential target districts where we mapped the size of the market, performance of target flavors & brands, competition, supply chain and trade terms. We also looked at the macro-level drivers & barriers in beverage industry.
- Based on the research insights, a strategic roadmap was developed for the client outlining accessible market opportunity, growth outlook, supply chain optimization, pack-type & pack-size strategy and qualitative insights from various stakeholders.
- Additionally, a business plan was developed for the next 3 years highlighting unit economics, investment break-even and margin sensitivity analysis.