Final Report: Repositioning B-Natural in
the Health & Wellness Beverage
Segment
Group 1
- Kshitij Razdan 20240131025
- Param Chahal 20240131033
1. Introduction & Problem Statement
A. Context & Background
B-Natural, an offering by ITC, competes in India’s fast-growing yet crowded juice and wellness
beverage market. Despite ITC's formidable distribution and manufacturing muscle, B-Natural
continues to suffer from a 'me-too' image, lacking strong brand identity or differentiation.
The Indian beverage market has seen a surge in health-conscious consumers looking for
products that are authentic, natural, and functional. B-Natural’s struggle stems from:
- Perception as a follower rather than an innovator
- Lack of brand equity despite ITC's backing
- Ineffective communication of product benefits
B. Problem Definition
Core issues:
- Undifferentiated brand identity
- Low consumer recall and preference
- Weak storytelling around natural ingredients
- Limited visibility in modern trade and digital platforms
Key Question:
How can B-Natural break away from its ‘me-too’ perception and position itself as a leader in
authenticity and natural ingredients while leveraging ITC’s supply chain strengths?
C. Research Objectives & Methodology
Primary Research:
- Online surveys (n=6): Age 18-45, Tier 1 & Tier 2 cities
- Focus Groups (6 groups): Mixed gender, working professionals &homemakers
Secondary Research:
- Industry reports (Euromonitor, Nielsen)
Frameworks Used: STP, 4Ps, SWOT, PESTLE, BCG Matrix, Porter’s Five Forces, Brand Positioning
Framework, Blue Ocean Strategy
2. Industry & Market Analysis
A. Indian Beverage Industry Overview
Metric Value
Market Size (2023) $6.7 Billion
CAGR (2023-2028E) 11.5%
Health & Wellness Subsegment $1.2 Billion
Expected CAGR (H&W) 15.2%
Macro Trends:
- Demand for clean labels, natural and organic ingredients
- Rise in functional beverages (immunity, hydration, gut health)
- D2C disruption & quick-commerce growth
- FSSAI focus on sugar and additive transparency
B. Competitive Landscape
Brand Positioning Price (per 1L) Differentiator
Real Mass-market, fruit INR 110 High recall,
pulp widespread
Paper Boat Nostalgia + INR 130 Ethnic drinks,
Tradition storytelling
Raw Pressery Premium, cold- INR 250 Functional, cold-
pressed pressed
Tropicana Functional fruit INR 120 Legacy, range
blends
B-Natural Natural (claimed) INR 115 ITC Network
Porter’s Five Forces Summary:
- High rivalry: Saturated with domestic and global players
- High buyer power: Low switching costs
- Medium supplier power: ITC advantage in backward integration
- High threat of substitutes: Carbonated drinks, flavored waters
- Medium threat of new entrants: Distribution and capital-intensive
C. Consumer Trends & Insights
Segment Proportion (%) Key Need
Health Seekers 25 Benefits like immunity
Fitness Enthusiasts 20 Low-calorie & clean
Moms & Homemakers 30 Nutrition for family
Young Professionals 25 Quick & Instagrammable
3. Brand Positioning & Differentiation Strategy
A. Current Brand Perception Analysis
- Brand Recall: 17% unaided
- Association: 'Generic juice brand'
- Low differentiation from Real or Tropicana
B. Unique & Ownable Positioning
Positioning Statement:
B-Natural: From Farm to Bottle – Honest Ingredients. Real Nutrition.
Points of Parity Points of Differentiation
Taste 100% Indian-sourced fruits
Convenience No concentrates or added sugar
Availability ITC’s traceable farm network
C. Messaging & Communication Strategy
Tagline Options:
- Nothing to Hide
- Nature's Real Deal
- Honest Juices, Indian Roots
Communication Pillars:
- Ingredient Provenance (Indian orchards)
- Clean Labels & Certifications
- Real stories from Indian farmers
4. Product & Packaging Innovation
A. Product Strategy
New SKU Ideas Functional Benefit Target Segment
Cold-Pressed Detox Blends Immunity, digestion Fitness Enthusiasts
Ayurvedic Wellness Range Gut health, energy Homemakers
Low-Calorie Office Packs On-the-go hydration Young Professionals
(200ml)
Blue Ocean Opportunities:
- Functional ethnic drinks (e.g., Amla-Ginger, Turmeric-Coconut Water)
- Subscription packs for wellness centers
B. Packaging & Labeling Strategy
- Transparent bottles with minimalistic labels
- QR codes for farm-to-bottle traceability
- Recyclable TetraPak with certified green ink
5. Go-To-Market (GTM) & Distribution Strategy
A. Route-to-Market Plan
Channel Strategy
Modern Trade Premium shelf placement with health
signage
General Trade ITC wholesalers to drive wider penetration
E-commerce Hero SKUs on Amazon, Flipkart, BigBasket
D2C & Q-commerce Blinkit, Zepto, ITC Store for bundles & trial
packs
B. Retail & Channel Strategy
- Modern Trade: Sampling booths in Nature’s Basket, Foodhall
- General Trade: Promote 200ml trial SKUs for kirana counters
- HORECA: Supply to healthy cafes, co-working hubs
C. Pricing & Promotions
Pack Size Price Strategy
200ml INR 35 Entry point, impulse buy
1L INR 115 Regular use
6-Pack INR 600 Subscription, D2C promo
6. Financial Feasibility & Scalability
A. Cost Structure & Profitability Analysis
Component Cost (per Litre)
Raw Materials INR 30
Processing & Packaging INR 25
Distribution INR 20
Marketing INR 10
Total INR 85
Break-even Volume: 1 million litres
B. Revenue & Market Share Projections
Metric Volume (L) Revenue (INR Cr)
TAM 250 Cr 28,750
SAM 50 Cr 5,750
SOM (Year 1-3) 1 Cr 115
C. Investment & Budget Allocation
Activity Share (%)
Digital Marketing 35
In-store Activations 25
Influencer & Sampling 20
ATL (TV/Print) 15
Product Development 5
7. Implementation Roadmap & KPIs:
A. Phased Implementation Plan
Short-Term (0-6 Months):
- Pilot in Delhi, Mumbai, Bengaluru
- Launch new packaging & 3 functional SKUs
- Partner with Blinkit, Nature’s Basket
KPIs: Brand awareness, trial rates, social engagement
Medium-Term (6-18 Months):
- Expand to Tier-2 cities (Indore, Jaipur, Kochi)
- Introduce Ayurvedic range
- Institutional sales in gyms, wellness centers
KPIs: Sales velocity, repeat purchases
Long-Term (18+ Months):
- Pan-India rollout
- Launch international SKUs for Indian diaspora
- Long-term campaigns around sustainability
KPIs: Brand equity, profit margins, share of market
B. Resource Allocation & Execution Responsibility
- Cross-functional core team (Marketing, Ops, R&D)
- ITC’s existing cold-chain & retail network
C. Risk Mitigation Strategies
- Backup suppliers for raw material volatility
- Pre-emptive pricing strategies
- Transparent communication to tackle skepticism
D. Tracking & Optimization
- Monthly dashboards (Sales, Sentiment, Engagement)
- Quarterly brand audits
- Feedback loops via D2C & retail partners
8. Conclusion & Strategic Recommendations
A. Summary of Key Insights
- B-Natural's biggest challenge is identity confusion
- Consumers want natural, transparent, functional beverages
- Competitors have stronger storytelling, product clarity
B. Critical Success Factors
1. Strong & unique positioning
2. Functional, relevant product innovation
3. ITC’s distribution & visibility strength
4. Digital-first communication
5. Price-accessible sampling
C. Risk Assessment & Contingency Planning
- Consumer skepticism
- Aggressive competitor pricing
- Disruption in sourcing due to weather or regulations
D. Final Recommendations & Action Plan
-Build a unique identity rooted in authenticity
- Invest in digital-first storytelling & influencer sampling
- Launch 2-3 functional SKUs and test markets
- Focus on pricing tiers to encourage trial and scale
- Leverage ITC’s ecosystem for faster, cost-effective expansion
