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

5

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.

6

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.

7

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.

8

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.

9

CHAPTER - 2

VISION, MISSIONAND OBJECTIVES

10

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.

11

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,

13

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

14

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

15

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.

16

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

18

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.

21

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

22

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.

23

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.

24

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.

26

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.

27

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.

29

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

31