SVKM’S NMIMS
SCHOOL OF BUSINESS MANAGEMENT
Program: MBA Academic Year: 2021-23 Duration: 2 hours
Date: 6-Sep-22
Time: 03:00 pm to 05:00 pm
Subject: Business Models and Planning (Trimester IV) Marks: 40
Instructions:
1. Candidates should read carefully the instructions provided by FTMBA Programme Office
2. Please note there are Mini case situation questions
3. The mini case is given below . Please read carefully
4. Please cover your responses from the various aspects of Business Models and Planning learnings
5. Please answer all the questions
Mini Case- “ Thande RAS” : ( Indian Context)
Sunil, Raghav and Neeti, final year MBA students of a Premium Institute were having mocktails at a
Five Star Hotel in Mumbai.
Neeti was in a good entrepreneurship mood and had been contemplating to launch a new Drink.
She started briefing her other two friends as below:
“The average Indian has spent the better half of the last two years stuck at home. Around 42% of the
working population has claimed that they have suffered from burnout due to extended work hours and
diminishing personal time. Indians are rapidly adopting ready-made caffeinated drinks which provide
them with an instant boost of energy. These drinks contain the traditional products like Tea and Coffee
as well products in the energy drink segment.
The energy drink segment in India is huge with a market size of 250cr and is expected to grow at 9.22%
annually over the next five years. However, this segment comprises of products which have been
introduced by the global FMCG companies like Red Bull, Coca Cola and PepsiCo. These energy drinks
generally taste sour or bitter and hence did not gain traction initially as stand-alone drinks. Some of
these products have started experimenting with flavors to improve their taste but have limited to generic
flavors like orange and cranberry which appeal to the mass global market.
However, Indian consumers, now sitting at home, are missing the flavors that they have grown up with
like Kala Khatta and Jal Jeera. Why don’t we jointly start a Indian legacy drinks , with “ThundeRAS
“ company name to meet this need of energy drinks with the desire of Desi Flavors.
The marketing of energy drinks revolves around extreme sporting events which aren’t popular in India.
Thus, with our understanding of the market and our audience, we can aim to address around 2% of the
Indian energy drink segment at max..
Taking a look at some of the existing players in the segment. Red Bull is the market leader in the
segment with a market share of over 65%. It is a globally renowned brand available in around 169
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countries. It has a strong visual brand identity which it maintains through YouT ube content, stunt shows
and sports marketing. In India, Red Bull is on the higher side of the price range, with a 250ml can
costing Rs 115
The second player is Monster which is owned by Monster Beverage. Coca-Cola has a 19.4% stake in
the company. Monster is gradually increasing its brand awareness and has a presence in more than 100
countries. It’s marketing strategy revolves around youth themes and extreme sporting events. The
pricing strategy is better than Red Bull, but it is also on the higher side on the spectrum. A can of 350ml
costs Rs 100.
The third player is Sting, which is an emerging product from PepsiCo. PepsiCo found the gap of taste
amongst the incumbent players and decided to launch a product which had a better taste. It launched
Sting in developing countries like Myanmar, India, Philippines, etc. at a very cheap price. It markets its
product to the Gen-Z population through environment related campaigns.
If we analyse the competitors as I stated above; we see that products in this segment hav e also
experimented with taste such as Red Bull Purple (Acai Berry Flavor), Red Bull Yellow (Tropical flavor),
Monster Mango Loco and Sting with their cranberry flavor. But these cater to the mass global markets
and do not tick the taste buds of Indians.
Also, the marketing around extreme sports does not tick the check box for Indians because extreme
sporting events are not popular in the country.
I have in mind three Indian prime natural drinks, which can become our “desi energy drink” -
Sugarcane, Cumin Based ( Jeera- Jal Jeera) and blackberry based ( Kala Khatta drinks)”.
Raghav said, “We can outsource all the production activities and just keep the revenue plan based on
the cost to us given by the vendor. The vendor will take care of packaging and quality control”
All of them agreed and planned a business plan meeting next week…
Based on the above Business Opportunity; please make a Business Model, ensuring the key
questions below:
Mini Case (“ Thande RAS”) Questions
1. Suggest who can be the founders and Co-founders of this Start up? What kind of arrangements they
should have for overall Equity and any Funding requirements? What is the value Proposition and
Customer Focus (10 marks)
2. Suggest in brief - a marketing plan that includes the product offering, pricing, promotional tools, and
distribution channel. (10 marks)
3. Provide a brief and realistic Business Canvas, considering the launch in today’s times
(10 marks)
4. Briefly discuss the business strategy, accounting, and financial strategy which can be used in this.
You may Project and comment on 1st year basic financial statements. You may make your own any
estimated Projections based on market segment and revenue plan.
(10 marks)
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