Abstract

After a couple of attempts at penetrating the Indian beverages market with their energy drinks, Frissia and Tzinga, proved unsuccessful, the four founders of India-based Hector Beverages Pvt. Ltd., knew they had to overhaul their strategy. In 2013, they launched Paper Boat – a brand that represented a wide range of ethnic Indian drinks. The brand was priced to represent a premium product and was positioned as a drink that stood for hygiene with a blend of nostalgia. The ethnic flavors and appeal of Paper Boat quickly captured the Indian customers’ tastes and also attracted support from investors. With the addition of a wide variety of juices and flavors, tie-ups with major Indian restaurants, airlines, and railways and collaboration with a Japanese firm for deeper distribution, the sales grew rapidly. Though Paper Boat carved out its own niche, it was not devoid of competition, which came from the huge unorganized local juice market and home-made fresh juices to bigger players like Dabur and ITC that were attracted to the segment. To create sales during the off-summer season, in early 2017, Paper Boat announced its foray into the indigenous foods segment as well, its first offering being Chikki, an Indian sweet made of jaggery and peanuts. Paper Boat believed in reliving childhood memories, the brand attempted to bring back lost recipes and the memories associated with them. The case explores the significance of a brand that evokes feelings of nostalgia, how natural products indigenously made can attract customers, and whether Paper Boat can achieve profits to ensure its long-term growth and sustainability.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Discuss the importance of nostalgia in building a brand
• Assess how a product can be launched by finding gaps in an established market
• Distinguish between branded and unbranded products
• Examine whether premium pricing can increase the customer base

Keywords

Ethnic beverages,Nostalgia,Ethnic beverage,Premium pricing,Customers’ tastes,Brand representation,Indigenous flavors,Distribution,Paper Boat,New product development,Identify Gaps in the existing market