Tata is planning to enter the Pepsi and Coke's den. Tata Tea, has launched non-carbonated beverages as "T!ON". Due to the strong presence of Pepsi and Coke, the barriers to entry in this industry were really high. Tata's only, with their humongous distribution presence in India, can have dared to enter this monopolized market. Parle Agro (Frooti and Appy) is fighting the battle with the giants of the beverage industry, in India.
As per now, T!ON is under concept testing. The brand has been launched in a small way, only in Chennai region. The product has been launched in three flavors-Mango Rush, Peach Punch and Apple Buzz. If the consumer's reaction is positive, sooner the brand would be made available to every retail store, pan India.
Tata's can gain super-normal profits if they are able to establish their brand T!ON. The journey would be tough, and the toughest challenge would be the Positioning and Price. The 400 ml bottle has been competitively priced at Rs 22. I believe, its smart pricing. Because, consumers don't really differentiate between a 400ml. bottle and a 500 ml. bottle. Moreover, pricing of Pepsi's 600 ml. bottle is Rs. 20 itself. Thus the just negotiable difference is less.
But, positioning still holds the key to success. I guess, we have to wait for few more months to get our answers!
By the way, I am still confused how the brand "T!ON" would be pronounced!
Ref.- Economic Times
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