Analysis of Ti Tonic
Ti-Tonics are propelled mixes of characteristic tea concentrates, fiber and plant polyphenols, intended to extinguish your thirst and sustain your body. Polyphenols are nature’s most intense cancer prevention agents and protectants.
It’s one of its kind products in the world in which the ingredients come from the wine making industry and fuse them to the beverage. Ti Tonic is injected with New Zealand grape seed that is normally removed utilizing our 100% Aqua Pure® prepare that utilizations just water to extricate the bioactives from these organic prfoduct. This implies the bioactives are separated in their regular shape and not harmed by solvents, or brutal concoction extraction strategies. What’s more no substance or dissolvable buildups are in the last item. Solidify drying of the last item guarantees the movement of the concentrates is kept up and not pulverized.(What’s special, ti-tonics.com)
Currently major export market is Australia.
Ti Tonics won award of Best Tea Beverage by NZJBA which is New Zealand Juice and Beverage Association.
Products offered by Ti Tonics are :
- Pomegranate Super Tea
- Blueberry Super Tea
- Passion Super Tea
- Mango Super Tea
- Nectarine Super Tea
My market analysis will be conducted in India which is second Largest in terms of population after China.
Market Research Analysis Tool
I will be using PESTEL for this market research as PESTLE investigation is a market examination apparatus that considers outside variables that can influence a business. It gives a bird eye viewpoint of the whole environment from an extensive variety of focuses that one needs to check and screen while pondering on a particular idea/plan.
PESTLE is the abbreviation which, when expanded stands for:
P – Political
E – Economical
S – Social
T – Technological
L – Legal
E – Environmental
India– Vote based system is the point of convergence of the Indian political framework, however is frequently compelled by social strains because of religious, position and semantic differences. India is the biggest vote based country on the planet and standards of popular government are profoundly dug in the Indian political framework. Indian assorted qualities is reflected in the elected political structure of government, where power is shared amongst states and the inside.
Foreign Policy: After a time of unmistakable comrade/communist predisposition, India has step by step warmed up to Western Europe, the US and numerous other outside nations. India is likewise taking a shot at unhindered commerce assentions (FTA) with Canada and the EU to change exchange encourage and fortify its two-sided associations with the two districts.
New Zealand- New Zealand’s political framework has a relative representation framework that gives rise to chance to both the gender; male and females. The nation has high scores in the World Bank administration pointers for 2014, which shows a solid democratic set-up and political security in the nation.
The nation is additionally executing the New Zealand Inc. technique, which plans to enhance the nation’s outer export and import through strong foreign relations. The technique is relied upon to cover India, China, ASEAN, Australia and the Gulf Cooperation Chamber (MarketLine,2015)
India is a political stable country; a relentless government does not mull over authoritative issues to effect business. On the other hand possibly it makes decisions and controls that pads relationship from political unbalanced attributes. There won’t be any political danger in introduce this new healthy organic tea to Indian markets.
ECONOMICAL FACTORS :
INDIA – Second largest workforce in the world
India is home to the second biggest workforce, which is relied upon to increment altogether throughout the following four decades. This gives India a critical edge over contenders, for example, China. According to Survey, “India a haven of stability amidst gloomy global economic landscape (Economic Times,2016)
Global Workforce (millions),2014-19
Size of workforce in 2014Size of workforce in 2019
China 706.8 683.9
India 437.4 472.2
United States 136.0 140.7
Brazil 94.3 98.7
Russian Federation 66.2 66.7
Source – Market Line
Developed equity market
Indian value showcase has indicated enormous change throughout the years, on account of the control by SEBI (Securities and Exchange Board of India). SEBI is the controller of securities market in India. Indian value markets have ended up world class, all because of the push towards progression and strong control. Indian value markets have been named as one of the best in Asia, and the current government’s push to open up the economy, has made the business sectors look all the more alluring. Securities exchange capitalization as a rate of GDP has ascended over the current years.( http://web.b.ebscohost.com.ezproxy.auckland.ac.nz/bsi/pdfviewer/pdfviewer?vid=21&sid=b961b8a7-3983-4024-bcd9-636fef4e0edd%40sessionmgr101&hid=124 )
New Zealand –
Resilient banking sector: The country has an adaptable keeping cash zone that weathered the overall fiscal crisis well. As of November 2014, there were 25 enrolled banks in the country. Australia and New Zealand Banking Group, Auckland Savings Bank, Bank of New Zealand, Kiwibank, and Westpac are the five essential trading banks. Out of the total enrolled banks, ten enlisted banks work in the country as branches of abroad consolidate banks.(PESTLE NZ)
OBSERVATION- This information demonstrates that Indian economy steady and developing, it will be proposed to be a decent market for this sort of business.
India is the most populous nation in the world after china with more than 1.2bn people.
Current strength with social aspects are urrent quality with social perspectives are the developing extent of youthful people. The middle age in India was 27.3 years in 2015(CIA – The World Fact book). Around 94.05% of India’s populace was assessed to be less than 65 years of age. Besides, 65.96% of the populace was assessed to be in the working-age gathering of 15-64 around the same time. Indian individuals put stock in enormous and rumoured brands. So they will incline toward huge and most presumed brand.
The social scene of the nation is solid with a streamlined social welfare framework, human services administrations, and education. The nation has scored high on human advancement through great levels of social insurance, education, and salary. Future during childbirth is 80.90 years for the aggregate populace starting at 2014(country PESTLE, MarketLine, 2015). Newborn child death rate remained at 4.6 for every 1,000 live births in 2014, which has been an astounding accomplishment (CIA-The World Factbook).
As per the UNDP Human Development Report 2014, the HDI for the nation is 0.910 and it is positioned seventh among 187 nations, a solid accomplishment.
New Zealand also holds a strong educational sector which reflects in the high enrolment rates of 5-14 year-olds, which was at 100% in 2013(OECD Economic Survey, 2015).
Ti Tonic will not face much difficulties in launching their product as there are more of younger population in India and they always look forward to try something good which is good in taste and healthier as well.
TECHNOLOGICAL FACTORS :
India has gained critical ground in the innovation segment. This is reflected by a sizable increment in the quantity of innovation establishments and number of licenses affirmed in the nation. Solid advance has been made in the telecom, IT, and IT-empowered administrations parts, and the nation has gotten worldwide acknowledgment in these regions. Despite the fact that India was a late starter in the biotech area, it has now settled a strong global reputation.
In spite of the fact that the administration has been proactive in its endeavours to empower development in the innovation part, the nation’s Research and development consumption at 0.8% of GDP is much lower than that of other developing markets, for example, Brazil and China.( Country PESTLE, Market Line, 2015). As a result, India’s extent of cutting edge made fares, which are items with high R&D power, has slacked behind its associates.
India lacks in term of developed countries, as major population lives in rural areas so India needs to push to urban infrastructure and able to provide proper power supply to the sectors and develop its weak sections like high transportation costs , storage problems and not living up to the standards units food and beverage industry.
New Zealand is very much furnished with institutional abilities for advancement and R&D. Be that as it may; the low R&D use is likewise reflected in the low number of licenses granted to the nation. The administration has reacted to the languor in development with specific measures. These are probably going to be viable over the long haul.(Country PESTLE, Market Line, 2015). Strengths of the New Zealand technological sector are institutional capabilities for innovation and strong ICT sector (Information and communications technology.
Organization needs to make suitable courses of action so as to profit appropriate mechanical offices with a specific end goal to defeat high transportation cost, sporadic power supply and capacity issues.
ENVIRONMENTAL FACTORS :
India’s developing populace has put an inordinate weight on characteristic assets, for example, water, backwoods, sand, rocks and minerals, and nature. Quick urbanisation and industrialisation has bothered the issues of contamination and appropriate sanitation, representing a genuine risk to biodiversity. An inordinate dependence on fossil powers for the expanding vitality requests of the country’s enormous populace has expanded India’s share of worldwide nursery outflows. Truth be told, the air in a large portion of the urban communities in India is perilously contaminated.
Climate Action Plan – India while submitting its climate action plan to the United Nation body in Bonn, Germany, in October 2015, made a commitment to increase its share of clean energy to 40% of its total energy, by 2030(India PESTLE report, MarketLine 2015) It pledged to fight the climate change by taking the energy efficient route and by systematically cutting down its “emission intensity”. It also clarified the assistance that it requires from the developed world in face of technology transfer and cheaper access to international finance, including the Green Climate Fund.
New Zealand’s natural issues are very much overseen, with different approaches being executed for ecological protection. The nation has arrangements checking air quality, biodiversity, environmental change, vitality, risky substances, and asset administration and wastage control. The nation has taken numerous activities to enhance its air quality and has set up new gauges under the National Ecological Standard on Air Quality to empower the business to accomplish larger amount of consistence.
India being biodiversity , and its own well renowned vineyards- SULA Vineyards, Nashik, the manufacturing of Ti Tonics can be carried out as the main ingredients come from the vineyards, so this can also reduce the export and import cost to the country.
Rules and Regulations-
Government goes ahead with a proposal to levy a steep 40% goods and services tax (GST) on such beverages (The Economic Times, December 5, 2015).due to increasing health diseases.
Reserve Bank of India (RBI) has chosen to take 2% for exports and 1% for domestic sales on the utilization of foreign exchange check and brand name. Organization that is framed in India by non-native’s are subject to pay the expense same as some other residential organization i.e. 33.66%
Food And Health Safety:
INDIA- FSSAI (Food Safety and Standards Authority of India
Recently due to presence of lead in the Maggi which is the product of renowned company Nestle, FSSAI banned the maggi in India which costed Nestle $67 million. (Erika, F. April 2016)
NEW ZEALAND- NZBC (New Zealand Beverage Council)
According to a recent article Govt take all important measures to keep its food and beverage standards high and up to the mark. Recently A minister has suggested that the recent outbreak of white spot disease that has threatened to destroy a third of Australia’s farmed prawn industry could be blamed on seafood importers knowingly selling diseased goods which is now being taken care of. (FSANZ, Jan 2017).
Also, New Zealand government is likewise wanting to acquaint assess on beverages with confine the measure of sugar devoured by youngsters (Broughton C, 2016).
Observation- As Tonic Ti will be presented in India, it need to stay aware of all the new standards and controls and furthermore, This can influence the cost and this will specifically influence the offers of the item.
SIMILARITIES AND CLASHES:
BACKGROUND TO INDIA-NEW ZEALAND TRADE :
New Zealand has a longstanding and amicable association with India, strengthened by regular social connections, for example, a typical dialect, popularity based conventions, and donning relations. Truly be that as it may, this relationship has not brought about exchange extension between them.
In 1986, a Trade Agreement amongst India and New Zealand was marked which accommodated the foundation of a Joint Business Council and a Joint Trade Committee ((New Zealand High Commission to India).
India has received a “Look East” arrangement, and has joined cooperation in territorial foundations, for example, the East Asia Summit (EAS) and the ASEAN Regional Forum (MFAT, 2010). This has implied that India and New Zealand are associating all the more consistently in the provincial setting.
India’s Share in World Trade –
Source – UN Comtrade Database
New Zealand’s Share in World Trade –
Source – UN Comtrade Database
As of now respective exchange streams amongst India and New Zealand are at beneath anticipated that levels analyzed would the worldwide exchange profiles of both nations as uncovered through exchange streams. Respective exchange is additionally limited to a tight scope of items. Regardless of the way that there is impressive potential to both increment and expand exchange given the exchange complementarities that exist between the two nations that so far remain moderately undiscovered.
The stunning growth of China and India since 1990s has basic impact on trade. These economies considerable markets with bewildering advancement and related open entryways give the associations and associations dynamic business open entryways and additionally have given unrivalled wander returns. The little size of the New Zealand grandstand makes for it more obligatory, to find and explore exporting and international investment opportunities.
Purchasing Power Parity (PPP) :
It alludes to the amount of the cash expected to buy a given unit of a good, or basic set of merchandise and enterprises. Purchasing power is unmistakably dictated by the relative average cost for basic items and swelling rates in various nations. Acquiring power equality implies levelling the purchasing power of two monetary nations by considering these averages cost for living and swelling contrasts (Economics online).
- 17.00 Indian Rupee is proportional to one US Dollar in regards to purchasing power in 2014. (World Bank Report)
- GNI Per capita Income for India (market conversion scale) – $ 1610
If we talk about both the countries, the purchasing power differences between both are as follow respectively:
- New Zealand holds 62 rank worldwide in terms of the GDP – Purchasing Power which is 168,187 (billions of $)(Revoly, 2015)
Source – mecometer.com
- GDP – Purchasing Power Parity of India secures 3rd rank worldwide in terms of Purchasing Power which is 8,642,758 (billions of $).(Revoly, 2015)
Source – mecometer.com
The above figures clearly shows that the India holds a lead in terms of purchasing power and launching a new business in India can be a good idea and can get a fortune in returns if scaled properly.
Clashes that the company might face while entering the Indian market are:
- Existing competitors in the market like organic India.
- Convincing people to use organic products.
- Many people still believe in good old taste and production.
- Due to religion, some might not prefer as it contains ingredients from vineyards.
- Targeting the right segment with right pitch.
As the product offered by the company is organic, the target audience would be different. It is important for the company to understand who their target audience would be. For this particular product it is important for the company to target the niche market or niche consumers in the society.
The target audience could also be the educated society or the younger population. As India has a large population of young and educated people. It would important for the company target this audience.
Also, the younger generation is more health conscious that the other segments of the society. It gives the company an opportunity to enter the market using this target audience. Also the product being expensive it is important for them to market the product to the people who can afford it and have the disposable income for it.
The company should focus on the consumers of Tier 1 and tier 2 cities of India.
Understanding demographics assumes a urgent part for an organisation to go into another market ,Being second biggest on the planet after China regarding populace, with larger part of youthful era need to focus on the this dominant part as this portion is more well being cognizant and alongside focusing on the speciality fragment.
when we are discussing the demographics for India , an organic must be exceptionally cautious in comprehension the particulars
An new entry segment needs demographics to distinguish the perfect shopper for his item or benefits and create promoting techniques, for example, item bundling, notices, business area and estimating.
The long-term story for Indian food consumption is promising, as a young and increasing population, coupled with rising incomes, will drive growth.
The government is effectively looking for interest in the herbal and organic industries, proposing that organizations communicating an intrigue would be allowed an extremely liberal speculation atmosphere.
Below is the graph to get a better view of Indians expenditure on non alcoholic drinks :
The primary focus of our item is youth populace and the general population who are working since short time. As indicated by results 19,948(‘000) are the youthful era. this era is dependably favour well being cognisant beverages. So this can be a positive flag to offer our item to our objective market. (Choudaha, 2012)
One of the main factors that the group could use in their division technique is geographic. This would permit the group to break the market into areas by atmosphere, density, market size, etc. Many organizations utilize atmosphere if their items or administrations depend on the climate.
India being well positioned on the globe, experience all the seasons.
Geographical front will not affect our product much as it’s a organic tea product which comes with different flavours so it can be consumed in any time of the season.
The interest in healthy drinks in the urban business sector has developed at 22% CAGR in the course of recent years, while the comparing figure for rural markets is 18% CAGR (compound annual growth rate). (Sharma,2016).
Psychographic And Human Behaviour :
Psychographic Segmentation is utilized for the most part to focus on a specific gathering from inside a population. Psychographic Segmentation is one which utilizes people groups way of life, their exercises, premiums and also sentiments to characterize a market portion. Psychographic Segmentation is very like behavioral division. Be that as it may, Psychographic Segmentation additionally takes the mental parts of purchaser purchasing conduct into records. These mental perspectives might be buyers way of life, his social remaining and additionally his AIO. (Bhasin, 2016)
India involves majority of young population. Yet, the way of life of today’s youth is changing from partying to more into stay fit and healthy and this gets in favour of following healthy diet and food habits.
This is the best time to promote this unique organic drink into Indian market.
Distinctive purchasers fall in various social classes. This depends for the most part on their purchasing power. The purchasing force is influenced by the foundation of the client, his salary and in addition his ways of managing money. The client will dependably purchase to keep up his social class.
Subsequently being organic product, this remains in the niche segment, Ti Tonic need to remember both – Lifestyle and additionally social class.
- Digital Marketting :
Online networking is exceptionally being used nowadays. Online advancements should be possible through Twitter, LinkedIn, Facebook, Blogger etc. We can make online journals, we can make page on Facebook and Twitter. This will help us to showcase our items among paople populace. Posting advancements on locales that get overwhelming human collaboration is one way to deal with get the word out about your business, for instance, we can utilize Facebook or MySpace having broadcasting programs with advancements exceptionally fitted to a particular statistic populace. These ads seem just nearby profiles that meet the motivations behind your thing’s target business division. In like manner, we can utilize Google AdWords organization to post online promotions this administration is exceptionally to post advertisements
Television Advertisements :
T.V business are the most ideal approach to showcase any item to the intended interest group. Relationship of the item with a prestigious individual, snappy jingles, appealing state of being or serious feeling makes a strong mental relationship in the customer. In India individuals appreciate watching cricket coordinates, the promoting this item around then is the most ideal approach to draw in more clients.
Print Media / Publications :
News papers are the most settled kind of print media. They are all things considered taken at home, or are open at daily paper slows down, and it is the most sensible way to deal with accomplishes a huge mass of people quickly. There are numerous daily paper as per the populace. As we are focusing on youth populace we can pick the new paper that Is for the most part utilized by youth populace. This can help us to achieve an ever increasing number of clients.
Boards have for the most part become mechanized, in any case they qualify under the class of print media after each one of, and the notices are imprinted on the release. These fuse substance and design generally as a blend in order to make it all
the all the more captivating. Boards can be shown on the streets, under bridge, in some occasion.
Advancing your thing event sponsorship can take various structures. You may get a certification in the event program, have an on area territory where you can give out example of the item, or your association logo may appear on the publications around the scene. The most ideal approach to elevate the item to youth populace is to print the logo on the uniform of cricket group or football group. By supporting an occasion the logo of the item can be imprinted on the ticket of that occasion. This will draw in the general population for the item.
The report demonstrates key model and factors that should be considered while entering into a market. PESTEL has given us overview of both the countries and where they stand in terms of feasibility to do business. Choosing India as an entry market could be beneficial for the company because of its large population and increasing awareness among people regarding health and awareness.
By doing PESTEL for working together on Indian market, we have inferred that there are numerous many points of interest with few impediments.
Taking a gander at Political and lawful, India government is arranging forced laws and assessments to make individuals devour less sugar sweetened drink, if these laws and expenses will be forced then it is less demanding to work together in Indian market.
Looking at soundness of nation, there won’t be any issue with respect to this point as India is a stable economy.
In Economical element PPP (Purchasing Power Parity) is most essential things in perspective of GDP. The discovering demonstrates that PPP of India is route superior to New Zealand. This can be sure flag for selling our product.
As indicated by the reviews, natural items will be most ideal items in not so distant future in Indian market, so this will favourable position for the organisation to offer it in Indian market. In India individuals are more worry about their well being in perspective of devouring beverages and refreshments. Individuals don’t incline toward more sugar sweetened beverages. Government is likewise spreading mindfulness about this issue, this can be a major favourable position to offer the item. Taste is the most critical issue in attempting any new item. In India individuals don’t want to attempt another flavor so this can be somewhat testing to get more purchasers.
Looking at the market analysis results, we can conclude that YES we can do business in India.
NZ PESTLE –
OECD New Zealand Economic Surveys-
PPP conversion factor, GDP (LCU per international $). (n.d.). Retrieved from http://data.worldbank.org/indicator/PA.NUS.PPP?locations=IN
List of countries by GDP- PPP
Dr. Statistics on Indian Higher Education 2012-2013. (n.d.). Retrieved from http://www.dreducation.com/2013/08/data-statistics-india-student-college.html
As summer peaks, cold drink war intensifies. (n.d.). Retrieved from http://www.financialexpress.com/industry/companies/as-summer-peaks-cold-drink-war-intensifies/262303