Frooti Parle Project
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Transcript of Frooti Parle Project
MINOR PROJECT REPORT
On
Frooti Parle
Submitted in partial fulfillment of the requirements for the award of the degree of
BACHELOR OF BUSINESS ADMINISTRATIONTo
Guru Gobind Singh Indraprastha University, Delhi
Session 2011 – 12
CERTIFICATE
I, Himani Ghai, Enrolment No.04321301710 of BBA-III Sem-II Shift from Tecnia
Institute of Advanced Studies, New Delhi has done my secondary data based study &
prepared Minor Project Report on the Company “Frooti parle” for partial fulfillment
of Bachelor of Business Administration (BBA) to be awarded by G.G.S.I.P.
University, Delhi .
Date: 5-12-2011
(Himani ghai)
Certified by:
(Dr. Ajay Pratap Singh)
Assistant Professor
Management Department
2
Acknowledgement
I would like to thank (Director) who has been a constant source of inspiration and my
special thanks to DR. AJAY PRATAP SINGH (project guide from the institute) for
her extensive guidance, cooperation and support.
Finally, I wish to express my gratitude to all those who have in one way or other helped me in the successful completion of my project report.
Himani Ghai04321301710
3
contents
1. Introduction and company history
1.1 About frooti 6
1.2 History 7
1.3 Non Carbonated soft Drink market in India 8
2. Vision, Mission and Objectives
2.1 vision 11
2.2 Mission 11
3. Marketing Linkeages
3.1MarketingMix 13
3.2 Marketing Mix of Frooti 16
3.3products 18
4. Financial Linkeages
4.1 Financial Results 20
4.2 Director Statement 21
4.3 Auditor`s Report 23
5. Company`s Image
5.1 SWOT analysis 25
6. Conclusion 29
7. Bibliography 31
4
Chapter-1
INTRODUCTION AND COMPANY
HISTORY
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1.1 ABOUT FROOTI:-
Mango - India's national and most premium fruit was a virtually untapped segment
until the year 1985, which saw the launch of Frooti Mango in a trendy convenient
tetra-pack.
Frooti Mango is Parle Agro's flagship brand and India's leading fruit drink with an 85
% market share.
Now, Frooti also comes in PET bottle packing.
Frooti is like an Indian ambassador and is a hot favourite not only in India but all
across the world.
What does Frooti stand for?
Frooti, fresh 'n' juicy. It is all about trendy fresh natural fruit drinks, full of fun-n-
masti, with good wholesome values for kids and teenagers alike and consumed by
all…universally.
Frooti is available in Mango, Green mango flavours all over India and in Orange,
Strawberry and Pineapple flavours in some selected regions in 1 litre, 500ml, 250ml
200 ml and 65ml packaging .
Frooti is the market leader in Fruit drink segment in Non Carbonated Soft Drink
(NCSD) category.
Ingredients
The drink contains mango pulp, water, sugar, citric acid, ascorbic acid and approved
colouring and flavouring.
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1.2 History
Frooti was launched in a green rectangular TetraPak as a ready-to-serve mango drink.
Although, it wasn’t the first mango drink, Frooti quickly acquired a large market
share. The packaging played a major role behind its success, since it could be carried
easily and conveniently. Frooti also provided a refreshing mango taste that translated
into a huge demand for itself. The tagline- “Mango Frooti, Fresh and Juicy”, helped
the brand strengthen and consolidate its position as the leader.
Brand Communication
Over the years the brand has experienced a series of repositioning. From the original
tagline “Mango Frooti, Fresh and Juicy” to “Juice Up your Life”. Eventually, the
original tagline- “Mango Frooti, Fresh and Juicy” was reinstalled. The present ad
campaigns focus on reaffirming Frooti’s leading position across India in a confident
manner.
Packaging
To ensure convenience, Frooti is offered in size variants: 1 litre, 250ml and 200ml
TetraPaks. A consumer study revealed that the consumers needed a recap bottle that
didn’t exist in the mango drink segment. Parle Agro considered the consumer
requirement strongly and launched Frooti in a new hygienic hotfill PET bottle,
making it the first mango drink to be offered in the PET bottles.
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1.3 NON-CARBONATED SOFT DRINK MARKET IN INDIA
AN OVERVIEW
The non-carbonated SOFT DRINK (NCSD) sector can be classified as Fruit drinks,
Nectar and Juices. The classification is based on the percentage of the fruit pulp
content in the beverage. Fruit drink has to have minimum fruit pulp content of 10%,
while Nectar needs to have a minimum fruit pulp content of 25%. The total size of the
branded non-carbonated beverages in the organized segment is estimated at
Rs500crores.
The Fruit drink segment is estimated at Rs250-300crores, while the Juice market
(Branded & Packaged) is estimated at Rs150crores. Nectar is a small category of
around Rs35-50crores.
In the fruit drink category, Parle’s Frooti, Godrej’s Jumpin and Coca-Cola’s Maaza
and Pepsi’s Slice are the major brands.
In the Nectar segment, the key national players are– Dabur , Godrej Xs and Parle’s
Appy.
The two key national level players in the juice segment are Tropicana and Real. Real
is the market leader with 55-60% market share. Tropicana has an estimated share of
30-35%.
Several local/ regional brands also exist, besides a huge unorganized sector.
The Juice category is the fastest growing segment at present, estimated to be growing
by 20-25% pa. The fruit drinks category has also been witnessing growth of around
5% pa.
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The main reason for this growth in the NCSD Category is the change of the consumer
preference from the carbonated to the non-carbonated soft drink sector mainly due to
increasing Health Awareness among consumers and the Pesticide issue relating to
Coke and Pepsi.
In the Fruit Drink segment, Frooti is the clear market leader with around 85% market
share but in the NCSD category as a whole , its share has been declining because of
the growth in Fruit Juice segment.
So, with the growth of the NCSD category, Frooti has to compete with all the
segments in this category to take a larger share of this growth.
It is the fashion brand of Parle agro. It was Introduced in 1985 and it was the
first Fruit Drink to be introduced in India. s sourced from the rich natural environs
of Himachal Pradesh. The clear and crisp Appy Nectar is a premium product available
in a 200 ml easy to pour pull-tab opening pack.
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CHAPTER - 2
VISION, MISSIONAND OBJECTIVES
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2.1 Vision:-
To be the leaders in our business. We will stand apart from the competition by being
the first in the market to innovate.
2.2 Mission:-
“To provide consumers superior, wholesome agro based food and drink brands
through which Parle can build a profitable; growth oriented organization”.
Parle is a leading Indian Food and Beverage Company, the only Indian transnational
giant with the past experience of having successfully launched leading soft drink
brands like "Frooti, Appy, N-Joi and Bailley". Today its brand portfolio consists of
No. 1 brands like Frooti along with Appy, N-Joi and Bailley.
Parle agro was the first to identify the dormant mango segment in India and launch
India's first national Mango drink - Frooti Mango. Today Frooti has an 85% market in
the Fruit Drink segment.
Today, the Parle Group turnover is over Rs.600 crore with group strength of over
1000 employees, including over 400 professionals.
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CHAPTER-3
MARKETING LINKEAGES
12
3.1 MARKETING MIX
Marketing decisions generally fall into the following four controllable categories:
Product
Price
Place (distribution)
Promotion
The term "marketing mix" became popularized after Neil H. Borden published his
1964 article, The Concept of the Marketing Mix. Borden began using the term in his
teaching in the late 1940's after James Culliton had described the marketing manager
as a "mixer of ingredients".
The ingredients in Borden's marketing mix included product planning, pricing,
branding, distribution channels, personal selling, advertising, promotions, packaging,
display, servicing, physical handling, and fact finding and analysis.
E. Jerome McCarthy later grouped these ingredients into the four categories that today
are known as the 4 P's of marketing,
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Product, price, Place and Promotion.
These four P's are the parameters that the marketing manager can control, subject to
the internal and external constraints of the marketing environment.
The goal is to make decisions that center the four P's on the customers in the
target market in order to create perceived value and generate a positive response.
Product Decisions:
The term "product" refers to tangible, physical products as well as services. Here are
some examples of the product decisions to be made:
Brand name
Functionality
Styling
Quality
Safety
Price Decisions:
Some examples of pricing decisions to be made include:
Pricing strategy (skim, penetration, etc.)
Suggested retail price
Volume discounts and wholesale pricing
Cash and early payment discounts
Seasonal pricing
Bundling
Price flexibility
Price discrimination
Distribution (Place) Decisions
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Distribution is about getting the products to the customer.
Some examples of distribution decisions include:
Distribution channels
Market coverage (inclusive, selective, or exclusive distribution)
Specific channel members
Inventory management
Warehousing
Distribution centers
Order processing
Transportation
Reverse logistics
Promotion Decisions
In the context of the marketing mix, promotion represents the various aspects
of marketing communication, that is, the communication of information about
the product with the goal of generating a positive customer response.
Promotion decisions include:
Promotional strategy (push, pull, etc.)
Advertising
Personal selling & sales force
Sales promotions
Public relations & publicity
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3.2 MARKETING MIX OF FROOTI
A) PRODUCT:
A product is anything that can be offered to a market to satisfy a want or need.
India's first real fruit drink in a Tetra Pak is available in - Frooti Mango, Green
mango. Frooti Mango is from premium Indian Mangoes. Frooti has also been
introduced in PET bottle packing.
Mango Frooti contains vitamin A which is essential for eye sight, growth and
healthy skin. Frooti is a delicious and refreshing ready to serve fruit beverage.
Frooti comes in Fruit drink segment of NCSD category (NON CARBONATED
SOFT DRINK)
Frooti is available in following quantities:
1)65ml (Only Tetra pack packaging)
2) 200ml (Only Tetra pack packaging)
3) 250ml
4) 500ml (Only PET Bottle)
5)1000ml (Only PET Bottle)
Hence, we can see that Frooti has got a very large quantity basket.
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B) PRICE:
TETRA PACK PACKAGING
Quantity Price
65ml 2.50Rs
200ml 10Rs
250ml 12Rs
PET BOTTLE PACKAGING
Quantity Price
250ml 10Rs
500ml 18Rs
1000ml 30Rs
In order to maintain its position as a market leader, Frooti is offering its
product in different quantities and prices depending upon the consumer
requirements, preferences and income-levels.
As we can see from the above table, Frooti’s new 65ml packaging is
priced at Rs2.50 only, targeting the lower income-group and it has also
been introduced in PET bottle packaging as it is more cost-effective as
compared to Tetra-pack packaging to become more competitive in the
market.
C) PLACE :
Frooti is the highest distributed brand in Fruit drink segment with an 85%
market share in India. Frooti reaches more than 10 lakh retail outlets
through more than 1500 distributors and wholesalers directly and indirectly.
This is borne out by Parle Agro winning the Beverage Industry award for
the Best Managed Supply Chain 2002 and the Highest Retail Availability
in the year 2002.
Frooti’s excellent distribution system has already been proved in our
market survey and analysis where 90% of the respondents agreed that
Frooti is readily available to them.
D) PROMOTION:
17
In a strategic move, Parle Agro Ltd is revamping its marketing plans in
a bid to promote its flagship brand ‘Frooti’ in the overcrowded
category. In fact, the company has taken a different marketing route by
launching a host of new retailing and packaging initiatives to pump up
volumes.
3.3 PRODUCTS:-
1. FROOTI
2. BAILLEY AQUA:-
It is a mineral water and was launched in the year 1993. It is one of the first
brands to get an ISI certification. Bailley conforms to stringent BIS Norms. It
undergoes 51 quality control tests includes 32 chemical tests, 9 microbiological
tests and 10 physical tests and meets international standards laid down by WHO,
USFDA, PFA. Parle Bailley Aqua is unique because it has the same consistent
taste across India. This is because of the unique purifying processing system,
which removes all minerals and salts and puts back only exact pre-measured
quantities of salts and minerals necessary for human body.
Bailley Aqua is purified with chemical free natural U.V. Treatment.
3. N-JOI:- Parle Agro entered the dairy segment with the launch of N-Joi. N-Joi is India's
first real fruit and dairy fresh milk drink. It contains orchard fresh pulp of
mango/strawberry and dairy fresh healthy low fat cow's milk. It's full of natural
goodness and wholesomeness. N-Joi is nutritious filler and a delicious smooth
fruit and milk drink. N-Joi Mango with dairy fresh milk and N-Joi strawberry with
dairy fresh milk have been rated as the Most Innovative products in the Beverage
Industry.
4. APPY:
An apple drink from Parle, it's available in a sleek, international pack. The brand
has been positioned as the champagne of apple drinks due to its unique richness of
taste. Unlike ordinary apple drinks, Appy spells style and exclusiveness which
makes it a party favourite in the upper crust of the society. Appy is made from
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freshly picked ripe apple s sourced from the rich natural environs of Himachal
Pradesh. The clear and crisp Appy Nectar is a premium product available in a 200
ml easy to pour pull-tab.
19
CHAPTER -4
FINANCIAL LINKEAGES
20
4.1 FINANCIAL RESULTS: (Rs. In Lacs) Particulars Year ended Year ended 31.03.2008 31.03.2007 Sales & Other Income 1288 2,799 Profit before tax and appropriations 247 692 Profit after tax 199 647 Earning per share 4.57 14.85 Cash Earning per share 5.66 15.89 PERFORMANCE Sales of the Company for the year ended March 31, 2008 were Rs. 1449.67 lacs low by 31.94% over the previous year. The earning per share and cash earning per shares that was negative during last year has improved substantially and stand at Rs. 4.57 and Rs. 5.66 Respectively. This year is a turn around year for the Company. The Company has started operations for M/s. Parle International Ltd., Mumbai in full swing. The products i.e. Frooti Mango Drink & Appy Fizz Apple Carbonated Drink in pet bottles has received tremendous response from the market. SICK COMPANY: During the year, the Company has settled all its dues alongwith interest under One Time Settlement Scheme with Business Co-Operative Bank and now it is a debt free Company. The Company has come out of purview of BIFR as per the proceedings of hearing held on 28th November 2007 at 11.00 am from BIFR. Operations have also improved during the last two years. DIVIDEND: Due to carry forward looses and the Company hitherto being a sick Company, your Directors express their inability to recommend any dividend for the year under review. MANAGEMENT DISCUSSION AND ANALYSIS REPORT: Management discussion and Analysis Report, as required under the Listing Agreement with Stock Exchange, is enclosed as Annexure. LISTING AT STOCK EXCHANGE: The equity shares of the company are listed on the Bombay Stock Exchange Limited, Mumbai and Madhya Pradesh Stock Exchange, Indore. The annual listing fees of Bombay Stock Exchange for the year 2008-09 have been paid to the exchange.
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DISCLOSURE OF PARTICULARS: As required by the Companies Act (Disclosure of Particulars in the Report of Board of Directors) Rules 1988, the relevant information is given hereunder; Conservation of Energy: The Companys operations involve very low energy consumption, and wherever possible measures have already been implemented for conserving energy. Technology Absorption: No Technology has been imported during the year. Foreign Exchange Earnings and Outgo: Foreign Exchange Earnings : Nil Foreign Exchange Outgo : Nil FIXED DEPOSITS: The Company has not invited / received any fixed deposits during the year. 4.2 DIRECTORS RESPONSIBILITY STATEMENT: In terms of Section 217 [2AA] of the Companies Act, 1956, your Directors confirm that: - In the preparation of the Annual Accounts, the applicable Accounting Standards had been followed, alongwith proper explanation relating to the material departures, wherever applicable. - The Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period. - The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of Companies Act, 1956 for safeguarding the assets of the Company and necessary checks and balances are in place for preventing and detecting fraud and other irregularities. - The Directors had prepared the Annual Accounts on a Going Concern
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Basis. CORPORATE GOVERNANCE: Though Clause 49 of the Listing Agreement became applicable to the Company in past, your Company has started following the said clause from 1st April 2007. A brief report on the Corporate Governance is enclosed and forms part of this report. Your Company will continue to practice good governance as set out under Clause 49 of the Listing Agreement of the Stock Exchanges. In addition to the basic governance issues, the Board lays a strong emphasis on transparency , accountability and integrity. RESEARCH & DEVELOPMENT: The R&D department of the Company has been arduously working to provide quality and value for money to the customers in keeping with market trends. AUDITORS: M/s. Shrikant L. Jajoo &. Company, Chartered Accountants, Nasik, retire as auditors of the Company at the conclusion of the ensuing Annual General Meeting and have confirmed their eligibility and willingness to accept the office for the Auditors, if re-appointed. PARTICULARS OF EMPLOYEES: The Information required u/s. 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 are not applicable to the Company as the Company has not employed any employee, particulars of whom is required to be given. SAFETY, ENVIRONMENTAL CONTROL AND PROTECTION: The Company has taken all the necessary steps for safety and environmental control and protection at the plant. DEPOSITORY SERVICES: The Companys Equity Shares are still to be admitted to the depository mechanism of the National Securities Depository Limited (NSDL) and also the Central Depository Services Limited (CDSL). Necessary steps are being taken to admit the same with both the depositories.
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4.3 AUDITORS REPORT: Notes on Accounts and other observations made in the Auditors Report are self-explanatory and therefore do not call for any further comments under Section 217(3) of the Companies Act, 1956, except item No. 7(ix) in Auditors Report regarding Sales Tax Liability which is qualified; suitable explanation for the same is as follows: The Company has not paid deferral Sales Tax in the year 2007-2008 as per Sales Tax NPV discounted payable scheme. Hence Rs. 23 Cr. Expenses has been reversal in the Balance Sheet 2007-2008 the company has to pay Rs. 2.51 Cr. And Rs. 3.24 Cr. As income has been shown more as the reversal of Sales Tax Benefits in the Balance Sheet as on 31st March 2008. From 1st November 2007 onwards P2P Agreement converted to Jobwork for the major client Parle Agro Pvt. Ltd. hence sales figures has gone-down with addition of Jobwork charges but without effecting profitability. ACKNOWLEDGMENT AND APPRECIATION: The Directors take this opportunity to thank the Companys shareholders, customers, suppliers, bankers and distributors for the support they have given to the Company and the confidence which they have reposed in its management and the employees for the commitment and dedication / shown by them The Directors look forward to their
continued support and understanding in the years to come.
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CHAPTER-5
COMPANY`S IMAGE
25
5.1 SWOT ANALYSIS
The overall evaluation of a one’s strengths, weaknesses, opportunities and threats is
called SWOT analysis.
STRENGTHS OF FROOTI
1) Market leader in NCSD category-60% percent market share.
2) Innovative- First packaged Mango drink in Indian market, first to introduce
Tetra pack, PET bottle packaging in NCSD category.
3) Quick market responder- Introduced 65ml packaging to cater different
segments.
4) Frooti has got a very large quantity basket-available in various quantities
like 65ml, 200ml, 250ml, 500ml and 1 Litre.
5) Efficient distribution network-readily available.
6) Frooti is a health drink- Contains Vitamin A.
7) Frooti has got a strong Brand Equity
WEAKNESSES OF FROOTI
1) Frooti is not perceived as a health drink. As per our survey majority of our
respondent didn’t consider Frooti has a health drink.
2) Frooti has limited variety of flavour- Only mango and green mango.
3) “Frooti means mango”, syndrome in the mind of consumers.
4) Margin given to retailers and distributors is less as compared to its
competitors.
5) The main target audience of Frooti is kids.
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6) Frooti has no brand ambassador.
7) No brand expansion- Brand equity of Frooti is not utilized properly.
OPPORTUNITIES FOR FROOTI
1) Huge untapped unorganized sector in NCSD category.
2) Huge untapped market in other flavours - Orange, Pineapples, Grape.
3) Growing market share of NCSD category.
4) Demographically, In the coming years around 55% of the population will
consist of below 35 years in age, which should be major target market for
Frooti.
5) Increasing health awareness among consumers-As per our survey 88% of the
respondents preferred fruit drink to carbonated drink.
THREATS FOR FROOTI
1) Decreasing share in NCSD category- Fruit juice segment consisting of Real
and Tropicana is increasing at the rate of 20-25% per annum as compared to
sluggish growth in other segment.
2) Presence of huge unorganized market.
3) High consumer preference for flavours other than mango and green mango.
4) Competition with global giants-Coke and Pepsi.
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CHAPTER-6
CONCLUSION AND OPINION
28
6.1 CONCLUSION
By some initiatives , Frooti can compete with the fruit juice segment comprising of
Real and Tropicana, and can maintain its position as a market leader in the
NCSD category.
It is doing good work by making new beverages for the society and making available
at a reasonable rates in the market.
6.2 OPINION
I would like to join the organisation because in extreem loss also company is not
making any type of comparison in its price and quality of products.
It is also getting support from their equity, shareholders, customers and from
banks also. They are taking safety steps against environment also.
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CHAPTER-7
BIBLIOGRAPHY
30
BIBLIOGRAPHY
Kotler Philip, Marketing Management, Tenth Edition, New
Delhi, Prentice- Hall of India Private Ltd., page no.176,182.
Saxena Rajan, Marketing Management, New Delhi, Tata
McGraw, Hill., page no.37, 95 & 108
http://parleagro.com/parle_family_tree.html
http://parleagro.tradeindia.com/Exporters_Suppliers/
Exporter13412.905C.12878P/Mango-Frooti-Mango-Fruit-
Drink.html
http://.netmba.com/strength/swot/marketingmix .html
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