Cloud 9: We are more than ready to take on any national or international giants

The energy drink segment in India has suddenly boomed and the category has witnessed several new launches in the recent past. But the story was not the same around 8-9 years back; the section was not at all competitive and had a monopoly of the Multinational player, Red Bull.

Some giant cola brands like Coca Cola did tried their hand in the segment in the past but were not lucky enough and had to withdraw.

In the year 2008 in the month of October, the segment witnessed a launch of an energy drink brand named "Cloud 9". The brand placed itself very differently and called their product not just Energy Drink but Natural Energy Drink. The new name challenged the monopoly of established name and has grown decent enough in a short span of almost one and a half years and has made its own brand name.

And for a change this brand is not backed by any MNC, which is generally the case, but is a product of, Goldwin Healthcare Pvt Ltd, handled by, Shree Jalaram Group, which is well known for its business in Construction and Lottery.

Adgully had a chat with Priyesh Ganatra, Director, Cloud 9 to know their market strength, future plans and the competition ahead.

Adgully (AG): What is the size of the energy drink market and what made you think about entering this market after the tremendous success of the lottery business?

Priyesh Ganatra (PG): The Indian energy drink market is still developing when you compare it to some of the more mature markets in countries like Europe and the Americas. Having said that, the Indian market is one of the most exciting when it comes to the potential for growth. Every day, sales seem to be surpassing the other, so that's good for us and the market as a whole.

The FMCG market was mainly dominated by foreign players, and the ingredient used in most of the energy drink was harmful to the human body, and the youth of our country was also getting addicted to the so called, "foreign energy drink". So we came up with an Indian Energy Drink which is made from fruit extracts and other natural ingredients falling under FDA standard and regulations, and as they say, the rest is history.

AG: Since the time of your launch, what share of market have you occupied?

PG: Today our market share stands at 25 -26%. And it is growing every day.

AG: The market was very strongly occupied by one strong Multinational player, so how was the competition when you launched?

PG: Although the multinational player that you refer to had a strong presence in the international market, they didn't have a great presence in India. We at Cloud 9 recognised the potential of the Indian market very early and decided to enter the market in a big way and cement an Indian presence in the Indian market. As you can see, it is we who are providing all the other so called, "giants" competition rather than the other way round.

AG: What was the reason behind naming your energy drink, "Cloud 9"?

PG: The name "Cloud 9" itself signifies a light, happy and elevated state of mind, which is exhilarating and gives you an energy boost, yet is not intoxicating. That inspired us in coming up with the name "Cloud 9'.

AG: With the launch of 'Burn' from Coca Cola who are known to operate with huge advertising/ marketing budgets, what's going to be Cloud 9's strategy to reach out the TG and gain the market share?

PG: Our strategy won't change much because we will continue to give the consumer the best product out there in the market today, and let them make their choice. We're sure that the consumer, as it has done till now, will continue to chose the best from the rest. Apart from being the best product in the energy drink market, we will continue to reach our consumer with an effective and smart distribution model, innovative and stylish advertising and publicity campaign, all driven by visionary leadership and motivated staff at Cloud 9 Energy Drink.

AG: Most of the brands new or old target club patrons which is basically the upper section of the society, is Cloud 9 also targeting the same audience?

PG: Even though we target club patrons; everyone who needs energy to boost their stamina and concentration to carry on with their daily life is as much our target audience as the club patrons are. It might include youngsters preparing for their exams to a business professional looking for that extra boost of energy in work, and even an athlete pushing himself to the full extent of his/her stamina or endurance.

AG: What is the marketing approach for the brand?

PG: Our marketing strategy looks at marketing as an entire 360 degree solution, which includes innovative branding ranging from movies to sports, including the IPL. We have excellent market distribution teams across the nation, which personally monitors our market segments like malls, multiplexes, retail, 5 Star hotels & restaurants, pubs, discotheques, gym, spa, cafes and airlines. Each tie up is supported with POP, loyalty programmes and consumer offers etc.

We also have a strong and innovative marketing strategy, which is effectively backed up by the popular brand campaign i.e. "Breaking News ' Drink and Drive, but only Cloud 9', which has already created a buzz in the media and attracted the consumer to the product, among many others.

Our marketing strategy is also spread across the media, including electronic, print and OOH. The company has also ensured that the brand reaches out to one and all. Visibility and penetration was gained from various exhibitions, road shows & events in malls & colleges. The innovative use of media, such as having association with the multi-starrer Bollywood film De Dana Dan and Veer, and the successful partnership with the renowned photographer Manish Chaturvedi by way of a calendar launch helped attract attention towards our product and increased our brand awareness and visibility.

In addition, the company sponsored many mega events & award functions, including a cricket match at Mumbai's Andheri Sports Complex. Moreover, Cloud 9 is the official energy drink partner for IPL T-20 Team, Chennai Super Kings, captained by the Indian Cricket Team Captain, Mahendra Singh Dhoni, which again helped Cloud 9 to connect to its consumer base and target audience.

AG: Presently Cloud 9 comes in 3 flavours, any new flavors or products of Goldwin Heath Care Pvt. Ltd. that is about to be launched?

PG: We were really excited about the tremendous response our energy drink got right at the onset with Pomegranate. After tasting success with our launch, we introduced new flavours like Wild Berry, Red Grapes and our latest and hugely popular product Premium.

After the launch and success of the Cloud 9 Energy Drinks, we are now planning to launch caffeine free Cloud 9 Cola, Tonic Water, Flavoured Mineral Water, Sodas, and Aloe Vera Juices by February 2010.

AG: How difficult or easy will it be to compete with international cola giants in the soft drink market?

PG: We do not underestimate the competition that the multinational cola giants will offer when we do get into the cola market. However, let me assure you that at present we are proving to be more than tough competitions to all the competitors that we have for our products.

Our Cola will easily be the healthiest cola in the market, which will be caffeine free and yet be tastier and livelier than any other product. The competition that we were faced when we decided to enter our energy drink market was just as daunting as the one we will face in the cola market, but I am sure that our resolve and dedication towards our new product and the team effort of our team will ensure the same success if not exceed it. You must remember that it was truly an impressive feat for an FMCG product to penetrate the market at the pace that Cloud 9 Energy Drink did.

Today, one can ask for Cloud 9 at one of the 80,000 outlets, more than 30,000 wine shops, high-end pubs and major five-star hotels across the country. We accredit our success to the combined efforts of the entire Cloud family.

We have complete faith and belief in our products and our team, and we are more than ready to take on any national or international giants. Also, we are getting offers across the globe to launch Cloud 9 Energy Drink, but as you know Indian Market is really vast and holds great potential for growth. So, the plans are there but we'll let the world know about it at the opportune time.