FROST CITRUSMARKET RESEARCH PRESENTATION

Outline Market Research Process

◦ Fruit shake products in the market

◦ Market survey

◦ Market segmentation

Developing a Fruit shake brand

◦ Marketing P’s

◦ Cost classifications

Market Positioning

Type of research Descriptive

◦ Who are the target market of fruit shakes

◦ What fruit shake brand customers buy

◦ Why are they drinking fruit shake

◦ When are they buying

◦ Where are they buying

◦ How much are they willing to pay

◦ How often do they buy fruit shakes

Market research Research Methodology: Survey conducted in Quezon City

Instruments: Questionnaire with 80 Respondents

Data Source: Primary, Quantitative◦ Open-ended: Answers are given and respondents choose the given answers

Sampling Method: Non-Probability, Simple Random

Demographic questions

Basic Question

Recently purchased brands

Serving

Flavor

Single fruit or combination

Benefits

Price

Locations

Frequency

Buying schedule

Define the problem How consumers rank fruit shake drinks?

◦ Treat

◦ Dessert

◦ Nutritional Supplement

Establish objective Identify the consumption behaviour of “fruit shake drinkers” in Quezon City.

Survey Analysis◦ Age 56 21-30 y.o

14 31-50 y.o.

10 13-19 y.o.

◦ Gender 45 Male

25 Female

◦ Occupation 12 IT Professionals

10 Engineers

9 Field workers

9 Appraisers

6 Doctors

5 Financial Advisor

5 Sales Agent

6 Self Employed

3 Photographers

5 OFW

2 Model

8 Nursing students

Survey Analysis

Fruitas Zagu Jamba Juice Big Chill0

5

10

15

20

25

30

3532

30

108

Frequently bought fruit shake brands

Survey Analysis

Small Medium Tall0

5

10

15

20

25

30

35

40

22

38

20

Fruit shake sizes

Top 10 Preferred fruit shake Flavours

1. Apple

2. Banana

3. Mango

4. Watermelon

5. Citrus

6. Pineapple

7. Melon

8. Water

9. Buko

10. Papaya

Survey Analysis

Size 33 Respondents 22 Respondents 13 Respondents 12 Respondents

Small 35 45 30 50-60

Medium 45 65 55 60-70

Large 55 75 80 90-130

Survey Analysis

Reasons for drinking fruit shake

1. Nutrition Value

2. Taste

3. Pick-me-upper

Survey Analysis

Top 4 Fruit Shake Placements

1. Malls

2. Near office

3. Stand Alone Stores

4. Convenient stores

Survey Analysis

Purchase Frequency Number of Respondents

Once a month 41 51%

Twice a month 28 35%

3-4 times a month 11 13.75%

Total

80 100%

Survey Analysis

Survey AnalysisBuying Schedule

80 – All respondents said they drink fruit shakes during afternoon snacks

18 – said they drink during breakfast

23 – said they drink during brunch

45 –during lunch

31 – during dinner

Advertising media can be apply during snack time, lunch and dinner

Target Segment IdentifiedAge

52 out of 80 respondents aged 21 – 30 years old.

Occupation

56 out of 80 respondents were identified as professionals (college graduate)◦ Plus the possibility of other respondents to appear as college graduates.

Target Segment IdentifiedPrice per serving

41.25% of Total Respondents will buy◦ Small 35

◦ Medium 48

◦ Tall 55

Fruit concoctions

64 out of 80 respondents preferred two or more fruit combinations.

Target Segment IdentifiedBuying schedule

51% of the total respondents said they buy fruit shake at least once a month.

Summary of Market Segment

TreatDiet

Usage Objective

EconomicHealth conscious

Lifestyle

P 9, 500 to P 13, 600

Income

Working Class

Social Class

21 and above

Age

5%

Mkt Share

Q.C.

Geographic

“We are targeting people living within

Quezon City; Age 21 and above; belongs to

working class who have a monthly income of

P 9, 500 to 13, 500; who are health

conscious and spending frugally their

money. They drink fruit shake as part of

snacks and diet.”

Market SurveyBASED ON THE SURVEY CONDUCTED IN QUEZON CITY WITH 80 RESPONDENTS, THERE IS A MARKET GAP WE CAN FIT IN

Existing Fruit Shakes in the MarketQUEZON CITY

Fruitas Zagu

Product Fruit Shakes Powder- flavoured shakes

Price P45-75 P35-60

Physical Environment Kiosks Kiosks

PlacementLocated inside SM Malls, Robinson’s Malls, Waltermart, EverGotesco Malls etc.

Located inside SM Malls, Savemore; Robinson’s Malls, Waltermart, Pure Gold Food Courts

Promotions Affordable price Affordable price

Existing Brands in Quezon City

Fruitas and Zagu prices are less expensive than other fruit shake which in is already a promotion on their part.

Its primary target market is low-income consumers and “value seekers”. People who just not look after the taste but also for nutritional value.

They have kiosks inside malls (kiosks along mall pathways and food courts)Their stores are at the right locations since these are the areas where low-income consumers hang around and pass-by.The right placement is another form of promotion because it is already a way of capturing the attention of their target customers.

What are Fruitas and Zagu doing right?

Big Chill Jamba Juice

Product Fruit shake/SmoothieFruit snacks

Fruit shake/Smoothie

Price • P 70-155 P110-210

Placement • Located at ABS CBN

• EastwoodLocated inside SM North EDSA and SM Megamall

Physical Environment • Bars and kiosks Bars and Stand Alone Stores

Promotions • Conveyed through social media

• Joining events (E.g. Franchise Asia Philippines 2013)

• Attractive design of cups

• Better dining experience

Existing Brands in Quezon City

The price is not too expensive yet not too cheap to be misconstrued as a low-

quality fruit shake.

Its target consumers are young professionals, working at the heart of Quezon City.

In addition, these people use Facebook to socialized. By chance, some get attracted

and attends trade conventions they found from Facebook.

Locations of Big Chill in QC are areas where people who have fair disposable

incomes thrive. They enjoy shopping or stopping-by the mall, watch movie and buy

lifestyle beverages worth more than P80.

What is Big Chill doing right?

The price of Jamba Juice matches its target market’s willingness to buy. It is higher than other fruit shake

brands since Jamba Juice are better in terms of:

◦ Taste and content. It comes with more selection of fruits such as strawberry, blueberry, peach and

raspberry.

◦ Nutritional Value: It also contains non-fat yogurt and sherbet which are rich in protein and calcium.

◦ Packaging: better design of cups.

◦ Dining experience in Jamba Juice is worth the money.

Unlike other lifestyle beverage and/or fruit shake brands that have kiosks, at Jamba Juice, you can drink and

stay at their store because they offer seats for customers. In addition, you can find Jamba Juice stores in areas

where upper class Filipinos those who have high disposable income thrive.

What is Jamba Juice doing right?

ProductRefreshing fruit shakes with the twist of tropical citrus fruits

Tropic Duo: Specially formulated fruit shakes with citrus blend

Banana Blast (Banana+dalandan+honey) Dalandan Bliss (Dalandan+Papayahoney)

Pineapple smoothie (Pineapple+citrus+honey) Kalamansi Kraze (Kalamansi+milk+honey)

Mango Mania Jr. (Mango+citrus+honey) Luscious Apple (Apple+citrus+honey)

Season Dazzler: Regular fruit blended with ice and honey

Apple Banana Coconut Dalandan Kalamansi

Mango Melon Papaya Pineapple Watermelon

Product Quality Based on the expectation of the target market. Taste test result

Blunt Grainy because of apple skin

Market SegmentsCharacteristic Low-income consumers

Geographic by Size Quezon City

Area LRT and Bus Terminals

Age 21 years old and above

Socio-economic Status Middle-Working Class

Income P 9,500-13,500

Lifestyle Economic, Health-conscious

Usage ObjectiveAs a treat, As part of their healthy option

Market Positioning The Process of creating an image or brand in the market

High Price

Low Price

Poor taste Delicious

Most Available

Least available

Poor taste Delicious

Nutritional Value

Low Nutritional Value

Poor taste Delicious

Unique Selling Proposition of Frost Citrus• Availability: High• Affordability: Good• Nutritional Value: Good• Taste: Fair

PriceVariants Small Medium Tall

Season Dazzler drinks

P 35 P 48 P 55

Tropic Duo drinks P 40 P 58 P 65

• The price is low that matches the fruit shake’s low cost.• The price set is for its target markets who are low-income consumers belonging to working class, receiving a monthly salary of P9,

500 to P13, 500.• Though fruit shake is more expensive than shakes like scramble, snow ball, banana split and mais con yelo, drinking Frost Citrus

makes a consumer feel more “conspicuous” of what he’s drinking. Besides, it has better nutritional value- that is why low income consumers will buy this - as a treat, and as part of their diet.

Cost

Product Cost Small Medium LargeDirect Materials 14 22.45 27

Direct Labor 6.5 6.5 6.5

Manufacturing Overhead 2 2 2

Manufacturing cost 22.5 30.95 35.5

Add: 35.5% Mark-up 12.425 17.05 19.5

Suggested retail Price P 35 P 48 P 55

Sales Forecast

Year 1Total Demand 10, 827.85Units sold 210, 818.19Sales 8, 334, 145. 88Less: Cost of Sales

4, 743, 409. 28

Gross Income 3, 590, 736. 61

Promotions Participate in trade events Developing own website Sales promotions conveyed through social media such as Facebook page.

MRT Stations Bus Terminals

Placement

EDSA –Cubao and EDSA – BalintawakBalintawak, Munoz, North EDSA, Quezon Ave., Kamuning, Cubao, Santolan

Frost citrus will establish kiosks in high traffic areas in QC such as MRT Stations and along bus terminals.Placement matches the product and price:

• Young professionals with low-disposable income travel using public transportations like MRT and buses.• The temperature is hot in MRT and bus stations in addition to the stressful, high traffic place. This makes people thirsty. Once they see

the kiosk of Frost Citrus, they will buy it because it is a refreshing fruit drink that’s readily available and very affordable.

Physical environmentKiosk Layout

Design

1. Fruits container

2. Stocks1. Extension cord2. Ice Box

Why Frost Citrus will vent using kiosk• Frost citrus only sell fruit shakes no other than that.• Frost citrus are vent in high traffic areas, where kiosk is the ideal structure to use.• Since the price of fruit shakes are low, it has to find another way to earn and it is by minimizing rent

expense. By placing a kiosk in its target location, Frost Citrus will incur lesser rent expense than renting a bar inside a mall and/or establishing its own store.

Process

No

Customer pass by the

store

Look for the menu

Buy? “Thank you Ma’am/Sir”

Take the order

Prepare the ingredients

Put it in the Blender and

mix

Pour the shake in the paper cup

Give the order to the customer

Yes

Get the Payment

Give the change

“Thank you Ma’am/Sir”

ProcessProcess when customer buys Frost Citrus1.) Customer will see the Frost Citrus kiosk2.) Customer will look for the menu3.) Customer will select what fruit shake he/she prefers4.) The kiosk personnel will prepare the order

-preparing the fruit ingredient/s and blending it with ice cubes and honey

-pouring the fruit shake into the cup5.) The kiosk personnel will give the order to the customer6.) The kiosk personnel will then get the payment

PeopleKiosk Personnel of Frost Citrus should-Encourage bystanders to buy saying: “Hi sir/ma’am, frost citrus po!”-Be approachable customers when taking their orders and getting the payment.-Always smiling when serving the customer.

• Kiosk personnel must be approachable because it is the way to capture customers and buy instead of another fruit shakes.

• Kiosk personnel should always smile so that customer’s mood are aided from the noisy, hot and crowded place.

(Happy Customer>Satisfied customer=Returning Customer)

Thank you Alfonso Jr., Gil Garachico, Aldous Luyong, Rhian Trupel, Reinell Yap, Karen