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INTRODUCTION
Cloud 9 is a product of Goldwin Healthcare Pvt. Ltd. Cloud 9’s vision has always been to provide India with drinks that give the consumers the desired energy boost, yet are completely healthy and have no side effects associated with other drinks. Cloud 9 achieves this exact balance of 'energy and health' through the perfect combination of naturally occurring, energy rich resources with high-tech manufacturing techniques that gives consumers the best of both worlds.
Cloud 9 is an Indian energy drink which has 4 flavors:
1. Pomegranate in tin cans of 250 ml,
2. Wild Berry in tin cans of 180 ml, 250 ml & 500 ml,
3. Red Grapes in tin cans of 250 ml and
4. Premium in tin cans of 180 ml, 250 ml & 500 ml.
Cloud 9 has also got other variants other than energy drinks they are:
• Cloud 9 Cola – a caffeine free cola
• Cloud 9 Green Apple
Cloud 9 is comparatively a young product in the market which is ruled over by multinational companies. Cloud 9 entered the market when the other multinational companies already had a strong market. The cloud 9 energy fruit drinks are made from natural fruit extracts and are healthy energy drinks.
Before deciding to venture into the market, the management of Cloud 9 conducted a thorough and detailed study of prevailing market conditions in the energy drink and cola market, and the entire FMCG sector as a whole. It was revealed in the study that the FMCG market was mainly dominated by foreign players and the ingredients used in most of the popular drinks were harmful to the human body.
Keeping in mind the revelations of the study, Goldwin Healthcare Pvt. Ltd. came up with India’s first natural energy drink and caffeine-free cola that was made purely from natural ingredients that completely adhered to FDA standards and regulations. Right at the outset, Cloud 9 recognized the potential of the energy drink market in India and decided to venture into it with a big push to cement an Indian presence in a scene dominated by international companies.
Cloud 9 Premium energy drink costs Rs.75/- for a can of 250ml and Rs.40/- for a can of 180ml.
Initially Cloud 9 was manufactured in Malaysia. But soon they started manufacturing all their products at the company’s state-of-the art facility in Nandur, 40 km from Pune (Maharashtra), spread across 27 acres. The manufacturing capacity is 400 cans per min (cpm).
Coud 9 faced a lot of completion from the multinational company Red Bull which was an established company in India and all over the world. The reason Cloud 9 decided to stand as a competitor to Red Bull was because Cloud 9 is an Indian energy drink while Red Bull is not. Also Red Bull has only one flavor while Cloud 9 has 4 flavors to their energy drinks.
Reasons of Cloud 9’s Failure:
Cloud 9 is the only Indian energy drink. The reasons why Cloud 9 failed in the Indian market are:
The market was already being ruled by Red Bull. While Red Bull is an international company and Cloud 9 is an Indian company. Also because Red Bull is a company that has been in the market since 2003 and Cloud 9 was launched in 2008.
Cloud 9 had only aimed at the youth which according to the VALS model come under the Experiencers category. Therefore they had already narrowed down their customers while the competitor brand had aimed all the categories except Fulfilleds, Believers and Strugglers.
Another reason why Cloud 9 did not work in the Indian scenario is that people have their mind sets that a foreign brand is better and also because people really take time to adapt to a new product.
Also another reason was that while Cloud 9 was being launched R.P Singh was their brand ambassador.
The main reason we found that the customers were adamant on switching over to a new brand of energy drink when they were loyal enough to only Red Bull. The Indian market has always been in favor of the international market and also we Indians have a habit of imitating the habits, ways and means of foreigners.
Analysis
Analysis as to why Cloud 9 had failed.
Cloud 9 did a very brave thing by entering a market ruled completely by another company. The taste of Cloud 9 premium was also nothing compared to that of Red Bull. Also the different fruit extract energy drinks tasted more like a juice than an energy drink.
1. We think that when they already had such a strong competitor as Red Bull they should have had a better and a more famous bran ambassador somebody who would have matched the profile of their product.
2. Cloud 9 being an Indian product and as an introductory price at least should have been priced at a little lower than Rs.75/-.
3. Since Red Bull was ruling the market since 5 years before Cloud 9 came in some other and more effective marketing strategies should have been used.
4. When Cloud 9 came up with the idea of coming up with fruit flavor energy drinks they had done research, but where they went wrong was that the customers didn’t really want something fruity. Their target audience was the youth and they are the ones who are all smitten over by the media. The youth is generally more biased to international products and that too something like Red Bull made them feel really cool and the fruit flavors of Cloud 9 made them feel a little childish.
5. Another reason we think could be is that the launch was not on a very large scale because not everyone knew about the new Indian energy drink called Cloud 9.
6. They did not aim the right categories. Only the Experiencers were being aimed for their product.
Renewed Brand Personality
We are re-launching Cloud 9 with new, exciting changes in the product and the entire brand personality.
Packaging: First of all is the packaging. We have come up with a new, sleek design for Cloud 9’s can in the shade of red. Red is a color mostly associated with passion, zeal and confidence. Thus, this color is perfect for the packaging of Cloud 9, which is an energy stimulating drink.
Tagline: We also have a new tagline for our product, that is – Takes you to Cloud 9. Cloud nine is a term used to define a state of elation or great happiness. That is the very aim of our product – to make our consumers feel good about themselves and make them believe that they can fulfill all their dreams and passions. The tagline indicates by drinking Cloud 9 a person can achieve that state of happiness.
Drink on the go: As we are re-launching the product, we are placing our product as a drink on the go. Cloud 9 is not just a drink you have while partying our clubbing. It is a drink you can have any time of the day, to revitalize yourself or to just feel good about yourself. You can have it while socializing with friends, you can have it after a hard day of work or you can simply have it at home. Cloud 9 is an energy drink one can have anytime one wishes to.
Brand ambassador: Cloud 9 has a new brand ambassador now, and that is Abhay Deol. He is not only a youth icon, but is also someone who gives a fresh, approachable vibe. He is the ‘new face of Generation Y’ making him the perfect choice for the re-launch of Cloud 9. Known for not following the conventional path, Abhay Deol has made his own choices in life, exactly what Cloud 9 stands for – Following your dreams and being who you are.
Cost: We are placing Cloud 9 in the market with a new, reduced cost of Rs.60 per can. Although the rate is lower than other energy drinks, Cloud 9 is twice as much effective than them. Cloud 9 is more than just a regular energy drink. For the health conscious, Cloud 9 is made with properties that won’t harm your body. We are launching Cloud 9 with just one refreshing flavor as of now and would introduce variants in the near future.
Target Audience
The new Cloud 9 with new properties is going to be aimed at 3 main categories:
1. Experiencers are motivated by self-expression. Young, enthusiastic, and impulsive consumers, Experiencers quickly become enthusiastic about new possibilities but are equally quick to cool. They seek variety and excitement, savoring the new, the offbeat, and the risky. Their energy finds an outlet in exercise, sports, outdoor recreation, and social activities. Experiencers are avid consumers and spend a comparatively high proportion of their income on fashion, entertainment, and socializing. Their purchases reflect the emphasis that they place on looking good and having "cool" stuff.
With respect to Cloud 9 because the new Cloud 9 will be priced a little low and would be affordable by them also because our new image of Cloud 9 is ‘cool’ which will go down well with the Experiencers category.
2. Strivers are trendy and fun loving. Because they are motivated by achievement, Strivers are concerned about the opinions and approval of others. Money defines success for Strivers, who don't have enough of it to meet their desires. They favor stylish products that emulate the purchases of people with greater material wealth. Many Strivers see themselves as having a job rather than a career, and a lack of skills and focus often prevents them from moving ahead. Strivers are active consumers because shopping is both a social activity and an opportunity to demonstrate to peers their ability to buy. As consumers, they are as impulsive as their financial circumstance will allow.
With respect to Cloud 9 because after the makeover Cloud 9 is going to be a product that if being consumed would make you stylish and make you in vogue. Therefore, Strivers would come well with the new Cloud 9.
3. Actualizers are successful, sophisticated, take-charge people with high self-esteem. Because they have such abundant resources, they exhibit all three primary motivations in varying degrees. They are change leaders and are the most receptive to new ideas and technologies. Experiencers are very active consumers, and their purchases reflect cultivated tastes for upscale, niche products and services. Image is important to Experiencers, not as evidence of status or power but as an expression of their taste, independence, and personality. Experiencers are among the established and emerging leaders in business and government, yet they continue to seek challenges. Their lives are characterized by variety. Their possessions and recreation reflect a cultivated taste for the finer things in life.
With respect to Cloud 9 because the renewed Cloud 9 would be as good as a new product and since they are receptive to new products we put them as the target audience for Cloud 9.
Demographic Profile:
Age: 13 years onwards.
Sex: Males & Females
Location: Metropolitan cities and all the small cities of India like Surat, Nashik, Pune,and many more.
Income group: middle class, lower middle class and higher middle class.
Psychographic Profile:
People who are on their own. The ones who place themselves as a step above the rest. Ones who are passionate in life. The people who like to balance their life – working and having fun, those who want to look cool by holding a can in their hand. Also people who wish to be on the go and energized all throughout the day.
Media Plan
Media Mix
Print
Electronic
Outdoor
Newspapers
Television
Billboards
Magazines
Radio
Electronic Media
Television
Product Launch:
We will be depending on the electronic media for the launch of our product.
Our product Cloud 9 would be launched on a large scale. We would be having Press Conference with our brand ambassador ABHAY DEOL and the owners of the company. At the press conference a lot of the retailers and stockists would also be invited to get the taste of the renewed Cloud 9. The press conference will be held at hotel J.W. Marriot. Most of the media houses would be invited to cover our event and also everyone will be getting free samples of Cloud 9 and also pack of 2 Cloud 9’s as a token of appreciation for them to come to our event.
Here we will unveil the new properties like the look, new slogan, our brand ambassador and most importantly the lowered price to Rs.60/-.
Sponsorship:
The new show khatron ke khiladi season 3 on Colors which is soon going to be aired will be sponsored by Cloud 9 and in every episode we will be having a contest question for Cloud 9 in collaboration with the contestants. Also Cloud 9 will be given to every contestant on the show before they are going to perform their stunt. By this we will be showing that our product actually takes you on Cloud 9 and you can perform better by getting a boost from our energy drink.
Beverage Sponsor: we will also be the beverage sponsor for the show Roomies on channel [V]. ‘Roomies’ is the story about five college friends staying together in one house and their lives. So here we will be placing our product under the Experiencers category and the message we will be conveying would be that ours is a an energy drink that will make you passionate about where you are and also the fact that you need to switch over at times to adjust.
We have also planned that we will have collaboration with the show Entertainment ke liye kuch bhi karega on SONY. Here we will again be the beverage sponsor and all the judges will be shown drinking Cloud 9. The message we try to give out here is ‘fuel your passion’ because all the participants on this show are performing passionately and only because they feel for what they are doing. Here we will be able to target a wide range of age groups, because the show is quite popular among the viewers and has a high TRP. Here we are mainly targeting the other categories of VALS, except for the Strugglers, because they could fall into the secondary audience category.
Lastly, on the television medium we will be sponsoring one more show that is Stuntmania on MTV. This show is about biking enthusiasts who perform stunts. Here we are targeting the Experiencers category mainly. This show we would be having contests in every commercial break which will be about Cloud 9 and the contestants of the show.
We have decided to sponsor so many different shows only because these 4 shows are not on the same channel mainly, also because these shows have a different target audience to it. Also because these shows are in no ways competitors of each other and have different viewership as well.
Television Commercials:
The different channels which will air our advertisements are keeping in mind our target audience.
The following is the list of TV channels where our TVC’s would be shown along with the show.
Sony Entertainment Ke Liye Kuch Bhi Karega.
Channel [V] Roomies
MTV Stuntmannia
Colors khatron ke khiladi
Bindaas D3 Commando Force
HBO movie at 9 pm
AXN The Amazing Race Asia
Radio
On the radio we will be having ads during the prime time i.e.
Morning 9.00am – 11.00am
Evening 7.00pm – 9.00pm.
Cloud 9 is a product of Goldwin Healthcare Pvt. Ltd. Cloud 9’s vision has always been to provide India with drinks that give the consumers the desired energy boost, yet are completely healthy and have no side effects associated with other drinks. Cloud 9 achieves this exact balance of 'energy and health' through the perfect combination of naturally occurring, energy rich resources with high-tech manufacturing techniques that gives consumers the best of both worlds.
Cloud 9 is an Indian energy drink which has 4 flavors:
1. Pomegranate in tin cans of 250 ml,
2. Wild Berry in tin cans of 180 ml, 250 ml & 500 ml,
3. Red Grapes in tin cans of 250 ml and
4. Premium in tin cans of 180 ml, 250 ml & 500 ml.
Cloud 9 has also got other variants other than energy drinks they are:
• Cloud 9 Cola – a caffeine free cola
• Cloud 9 Green Apple
Cloud 9 is comparatively a young product in the market which is ruled over by multinational companies. Cloud 9 entered the market when the other multinational companies already had a strong market. The cloud 9 energy fruit drinks are made from natural fruit extracts and are healthy energy drinks.
Before deciding to venture into the market, the management of Cloud 9 conducted a thorough and detailed study of prevailing market conditions in the energy drink and cola market, and the entire FMCG sector as a whole. It was revealed in the study that the FMCG market was mainly dominated by foreign players and the ingredients used in most of the popular drinks were harmful to the human body.
Keeping in mind the revelations of the study, Goldwin Healthcare Pvt. Ltd. came up with India’s first natural energy drink and caffeine-free cola that was made purely from natural ingredients that completely adhered to FDA standards and regulations. Right at the outset, Cloud 9 recognized the potential of the energy drink market in India and decided to venture into it with a big push to cement an Indian presence in a scene dominated by international companies.
Cloud 9 Premium energy drink costs Rs.75/- for a can of 250ml and Rs.40/- for a can of 180ml.
Initially Cloud 9 was manufactured in Malaysia. But soon they started manufacturing all their products at the company’s state-of-the art facility in Nandur, 40 km from Pune (Maharashtra), spread across 27 acres. The manufacturing capacity is 400 cans per min (cpm).
Coud 9 faced a lot of completion from the multinational company Red Bull which was an established company in India and all over the world. The reason Cloud 9 decided to stand as a competitor to Red Bull was because Cloud 9 is an Indian energy drink while Red Bull is not. Also Red Bull has only one flavor while Cloud 9 has 4 flavors to their energy drinks.
Reasons of Cloud 9’s Failure:
Cloud 9 is the only Indian energy drink. The reasons why Cloud 9 failed in the Indian market are:
The market was already being ruled by Red Bull. While Red Bull is an international company and Cloud 9 is an Indian company. Also because Red Bull is a company that has been in the market since 2003 and Cloud 9 was launched in 2008.
Cloud 9 had only aimed at the youth which according to the VALS model come under the Experiencers category. Therefore they had already narrowed down their customers while the competitor brand had aimed all the categories except Fulfilleds, Believers and Strugglers.
Another reason why Cloud 9 did not work in the Indian scenario is that people have their mind sets that a foreign brand is better and also because people really take time to adapt to a new product.
Also another reason was that while Cloud 9 was being launched R.P Singh was their brand ambassador.
The main reason we found that the customers were adamant on switching over to a new brand of energy drink when they were loyal enough to only Red Bull. The Indian market has always been in favor of the international market and also we Indians have a habit of imitating the habits, ways and means of foreigners.
Analysis
Analysis as to why Cloud 9 had failed.
Cloud 9 did a very brave thing by entering a market ruled completely by another company. The taste of Cloud 9 premium was also nothing compared to that of Red Bull. Also the different fruit extract energy drinks tasted more like a juice than an energy drink.
1. We think that when they already had such a strong competitor as Red Bull they should have had a better and a more famous bran ambassador somebody who would have matched the profile of their product.
2. Cloud 9 being an Indian product and as an introductory price at least should have been priced at a little lower than Rs.75/-.
3. Since Red Bull was ruling the market since 5 years before Cloud 9 came in some other and more effective marketing strategies should have been used.
4. When Cloud 9 came up with the idea of coming up with fruit flavor energy drinks they had done research, but where they went wrong was that the customers didn’t really want something fruity. Their target audience was the youth and they are the ones who are all smitten over by the media. The youth is generally more biased to international products and that too something like Red Bull made them feel really cool and the fruit flavors of Cloud 9 made them feel a little childish.
5. Another reason we think could be is that the launch was not on a very large scale because not everyone knew about the new Indian energy drink called Cloud 9.
6. They did not aim the right categories. Only the Experiencers were being aimed for their product.
Renewed Brand Personality
We are re-launching Cloud 9 with new, exciting changes in the product and the entire brand personality.
Packaging: First of all is the packaging. We have come up with a new, sleek design for Cloud 9’s can in the shade of red. Red is a color mostly associated with passion, zeal and confidence. Thus, this color is perfect for the packaging of Cloud 9, which is an energy stimulating drink.
Tagline: We also have a new tagline for our product, that is – Takes you to Cloud 9. Cloud nine is a term used to define a state of elation or great happiness. That is the very aim of our product – to make our consumers feel good about themselves and make them believe that they can fulfill all their dreams and passions. The tagline indicates by drinking Cloud 9 a person can achieve that state of happiness.
Drink on the go: As we are re-launching the product, we are placing our product as a drink on the go. Cloud 9 is not just a drink you have while partying our clubbing. It is a drink you can have any time of the day, to revitalize yourself or to just feel good about yourself. You can have it while socializing with friends, you can have it after a hard day of work or you can simply have it at home. Cloud 9 is an energy drink one can have anytime one wishes to.
Brand ambassador: Cloud 9 has a new brand ambassador now, and that is Abhay Deol. He is not only a youth icon, but is also someone who gives a fresh, approachable vibe. He is the ‘new face of Generation Y’ making him the perfect choice for the re-launch of Cloud 9. Known for not following the conventional path, Abhay Deol has made his own choices in life, exactly what Cloud 9 stands for – Following your dreams and being who you are.
Cost: We are placing Cloud 9 in the market with a new, reduced cost of Rs.60 per can. Although the rate is lower than other energy drinks, Cloud 9 is twice as much effective than them. Cloud 9 is more than just a regular energy drink. For the health conscious, Cloud 9 is made with properties that won’t harm your body. We are launching Cloud 9 with just one refreshing flavor as of now and would introduce variants in the near future.
Target Audience
The new Cloud 9 with new properties is going to be aimed at 3 main categories:
1. Experiencers are motivated by self-expression. Young, enthusiastic, and impulsive consumers, Experiencers quickly become enthusiastic about new possibilities but are equally quick to cool. They seek variety and excitement, savoring the new, the offbeat, and the risky. Their energy finds an outlet in exercise, sports, outdoor recreation, and social activities. Experiencers are avid consumers and spend a comparatively high proportion of their income on fashion, entertainment, and socializing. Their purchases reflect the emphasis that they place on looking good and having "cool" stuff.
With respect to Cloud 9 because the new Cloud 9 will be priced a little low and would be affordable by them also because our new image of Cloud 9 is ‘cool’ which will go down well with the Experiencers category.
2. Strivers are trendy and fun loving. Because they are motivated by achievement, Strivers are concerned about the opinions and approval of others. Money defines success for Strivers, who don't have enough of it to meet their desires. They favor stylish products that emulate the purchases of people with greater material wealth. Many Strivers see themselves as having a job rather than a career, and a lack of skills and focus often prevents them from moving ahead. Strivers are active consumers because shopping is both a social activity and an opportunity to demonstrate to peers their ability to buy. As consumers, they are as impulsive as their financial circumstance will allow.
With respect to Cloud 9 because after the makeover Cloud 9 is going to be a product that if being consumed would make you stylish and make you in vogue. Therefore, Strivers would come well with the new Cloud 9.
3. Actualizers are successful, sophisticated, take-charge people with high self-esteem. Because they have such abundant resources, they exhibit all three primary motivations in varying degrees. They are change leaders and are the most receptive to new ideas and technologies. Experiencers are very active consumers, and their purchases reflect cultivated tastes for upscale, niche products and services. Image is important to Experiencers, not as evidence of status or power but as an expression of their taste, independence, and personality. Experiencers are among the established and emerging leaders in business and government, yet they continue to seek challenges. Their lives are characterized by variety. Their possessions and recreation reflect a cultivated taste for the finer things in life.
With respect to Cloud 9 because the renewed Cloud 9 would be as good as a new product and since they are receptive to new products we put them as the target audience for Cloud 9.
Demographic Profile:
Age: 13 years onwards.
Sex: Males & Females
Location: Metropolitan cities and all the small cities of India like Surat, Nashik, Pune,and many more.
Income group: middle class, lower middle class and higher middle class.
Psychographic Profile:
People who are on their own. The ones who place themselves as a step above the rest. Ones who are passionate in life. The people who like to balance their life – working and having fun, those who want to look cool by holding a can in their hand. Also people who wish to be on the go and energized all throughout the day.
Media Plan
Media Mix
Electronic
Outdoor
Newspapers
Television
Billboards
Magazines
Radio
Electronic Media
Television
Product Launch:
We will be depending on the electronic media for the launch of our product.
Our product Cloud 9 would be launched on a large scale. We would be having Press Conference with our brand ambassador ABHAY DEOL and the owners of the company. At the press conference a lot of the retailers and stockists would also be invited to get the taste of the renewed Cloud 9. The press conference will be held at hotel J.W. Marriot. Most of the media houses would be invited to cover our event and also everyone will be getting free samples of Cloud 9 and also pack of 2 Cloud 9’s as a token of appreciation for them to come to our event.
Here we will unveil the new properties like the look, new slogan, our brand ambassador and most importantly the lowered price to Rs.60/-.
Sponsorship:
The new show khatron ke khiladi season 3 on Colors which is soon going to be aired will be sponsored by Cloud 9 and in every episode we will be having a contest question for Cloud 9 in collaboration with the contestants. Also Cloud 9 will be given to every contestant on the show before they are going to perform their stunt. By this we will be showing that our product actually takes you on Cloud 9 and you can perform better by getting a boost from our energy drink.
Beverage Sponsor: we will also be the beverage sponsor for the show Roomies on channel [V]. ‘Roomies’ is the story about five college friends staying together in one house and their lives. So here we will be placing our product under the Experiencers category and the message we will be conveying would be that ours is a an energy drink that will make you passionate about where you are and also the fact that you need to switch over at times to adjust.
We have also planned that we will have collaboration with the show Entertainment ke liye kuch bhi karega on SONY. Here we will again be the beverage sponsor and all the judges will be shown drinking Cloud 9. The message we try to give out here is ‘fuel your passion’ because all the participants on this show are performing passionately and only because they feel for what they are doing. Here we will be able to target a wide range of age groups, because the show is quite popular among the viewers and has a high TRP. Here we are mainly targeting the other categories of VALS, except for the Strugglers, because they could fall into the secondary audience category.
Lastly, on the television medium we will be sponsoring one more show that is Stuntmania on MTV. This show is about biking enthusiasts who perform stunts. Here we are targeting the Experiencers category mainly. This show we would be having contests in every commercial break which will be about Cloud 9 and the contestants of the show.
We have decided to sponsor so many different shows only because these 4 shows are not on the same channel mainly, also because these shows have a different target audience to it. Also because these shows are in no ways competitors of each other and have different viewership as well.
Television Commercials:
The different channels which will air our advertisements are keeping in mind our target audience.
The following is the list of TV channels where our TVC’s would be shown along with the show.
Sony Entertainment Ke Liye Kuch Bhi Karega.
Channel [V] Roomies
MTV Stuntmannia
Colors khatron ke khiladi
Bindaas D3 Commando Force
HBO movie at 9 pm
AXN The Amazing Race Asia
Radio
On the radio we will be having ads during the prime time i.e.
Morning 9.00am – 11.00am
Evening 7.00pm – 9.00pm.
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