Project ReportOn

FRUIT JUICE INDUSTRY

A Project report submitted in partial fulfillment of the

requirement of

POST GRADUATE DIPLOMA IN MANAGEMENT

IN

IV SEMESTER

Submitted to:- Submitted by:- RAVI PRAKASH MAURYA P.G.D.M. 4th Sem 2008-10

Introduction of Company

India is the second largest for foods and vegetables in the world. The total

production of food and vegetables is estimated to be around 148.5 million

tones, out of which fruit account for only 48.5 million tones and the rest 100

million tones is accounted for by vegetables. However, the fruit juice market

has not been fully tapped because of poor infrastructure, poor storage

facility, and highly unorganized market, chiefly constituted by road side

vendors. Consumer still prefer to buy juice from road side vendors even if

juices are unhygienic.

The major growth drivers in fruit juice market are, increase in health

consciousness among consumers, increase in disposable incomes, and more

sophisticated cocktail culture.

Major player and their brands:

Pepsi with its brand Tropicana. Dabur foods with its brand Real. Coca Cola India with its brand Maza.

Parle's Frooti No 1 fruit drink :

Frooti from Parle Agro is the largest distributed fruit drink with 85 % market

share in India. It reaches more than 10 lakh retail outlets in up to class C

towns through more than 1,500 distributors and wholesalers directly and

indirectly. India's first real fruit drink in Tetrapak is available in three

delicious varieties - mango, orange and pineapple - Frooti Mango from

premium Indian mangoes, Frooti Orange from chilled imported orange

concentrate from Brazil and Frooti Pineapple made from ripe juicy

pineapple. The company's another revenue earning brand includes Bisleri

water. The Bisleri brand of mineral water is being made available across the

country. It has a market share of 40 %.

Dabur's Real fruit juice in 9 flavours :

Dabur's flagship brand Real fruit juice is a market leader in the packaged

fruit juice category. Real was launched in 1996 and the brand has carved out

a niche for itself by claiming to be the only fruit juice in packaged form that

is 100 % preservative free. Real with a market share of 55 % offers to its

consumers the largest range of 9 juices that comprise orange, mango,

pineapple, mixed fruit, grape, guava, tomato, litchi and cranberry. Real

Junior, available in 125 ml packs, targets children below six years. It has two

favourite flavours of mango and apple enriched with calcium. Real Activ, a

100 % fruit juice with no added sugar, gives the goodness of fruits without

adding extra calories. Today, it is the preferred juice drink for the health and

fitness conscious young adults. Real Activ is available in orange, apple, and

orange-carrot variants. Real Activ orange carrot juice, India's first packaged

fruit + vegetable juice, is a combination of juicy oranges and sweet carrots.

Coolers, a fruit-based beverage, offers traditional 'cooling' recipes in a

ready-to-drink format. It is available in three variants - Aam panna,

pomegranate (anar) and watermelon Real juices are offered in hygienic

double seal spill proof caps in Tetrapak packaging. Once packed, the 6-layer

Tetrapak carton helps retain the freshness of the juice for a longer period of

time, thus maintaining the taste and nutrition of the juice. The fruits that go

into the juices are sourced from the best sources across the world, the

company claims. Dabur Food produces around 50 million litres of juice

annually through its state-of-the-art facility at Birganj, Nepal. In August

2004, the company commissioned a multi fruit processing facility in Siliguri,

in West Bengal, set up by Pasadensa Foods, a wholly owned subsidiary of

Dabur Foods Ltd. Spread over 11 acres and geared to process 150 tonnes of

fruit per day, it has the capacity to produce 192 tonnes of pulp/concentrate.

The plant procures fruits worth Rs 6 crore from West Bengal, North-East,

Bihar, Uttar Pradesh, Maharashtra and Andhra Pradesh. It has the highest

capacity utilization by processing pineapple, litchi, guava, mango and grape

round the year.

THE GROWING FRUIT JUICE MARKET:

This chance encounter with the wonder plant seabuckthorn was the reason

Ladakh Foods was set up as a separate company in 2002 to manufacture and

sell seabuckthorn juice as Lehberry. Ladakh Foods today claims to be one of

the fastest growing fruit juice companies in a fiercely competitive

environment where big names such as Dabur and Pepsi already hold

substantial market shares. Even when the fruit juice/nectar market is

projected to grow at a scorching pace of 40 per cent, a Tetra Pak study has

found that a whopping 86 per cent of the fruit juice market is still lying

untapped. Perhaps one of the main reasons why milk major Mother Dairy

announced it is jumping on to the bandwagon of fruit juice. The company

has launched packaged fruit juices under its flagship brand, Safal. Starting

from Delhi, the product is scheduled for launched on a nation-wide scale in

the months to come. The company says that having pioneered the marketing

of fresh and frozen vegetable products backed by a modern produce

handling and processing facility, Safal is now ready to script a new success

story. This time in the packaged fruit juices category. "With the market

growing at a healthy rate and with changing lifestyles and rising levels of

health consciousness among consumers today, the demand for healthier

products like packaged fruit juice is only going to increase in the times to

come. The fruit juice category is rapidly growing by over 50 per cent at

some stores for us; it's seen as healthy compared to soft drinks. They are

more hygienic than roadside fruit juices and are a big hit with yuppies. Also,

non-sugar variants find flavours with fitness freaks. For Safal, with its

expertise in producing and marketing various horticultural products in India

as well as overseas, juices are a logical extension of its portfolio. With the

launch of Safal juices. A large chunk of this growth will come from the Real

brand of fruit juices, since Real contributes as much as 85 per cent to the

company's top line. It will continue to be an area of focus.

Leading Manufacturers of Fruit Beverages in India:

Company Brand Flavours1. Parle Agro Frooti Mango, Guava, Pineapple,

Strawberry & Orange

Appy Apple

2. PepsiCo Ltd. Tropicana Orange, Nature Sweet, Apple, Grape, Pineapple, Tomato, Mixed Fruit.

Slice Mango, Litchi, Orange & Guava.

3. Dabur Real Grape, Guava, Orange, Pineapple, Tomato, Mixed Fruit, Litchi, Mango.

Real Active Orange, Apple

4, Godrej Foods Jumpin

Re

Xs

Orange, Apple

Orange, Apple

Orange, Apple5. Coca Cola Maaza Mango

6. BBI. II Tree Top Mango

7. Voltas Volfruit Mango

8. Hindustan Grapy Red Grapes, Litchi, etc.

9. HP Agri HPMC Apple Marketing

10. North East Agro Mkt. Ltd.

NERAMAC Pineapple

11. Kerala Milk Mkt. Milma Mango, Pineapple

12. Salstar Foods Regold Mango, Apple Mixed

13. Mohan Meakins Gold Coin Apple Juice

14. Modern Foods Rasika Mango, Guava

15. Eastern Fruit Efil Mango, Litchi

16. NAFEED Nafed Apple, Mango, Processed Guava, Pineapple, Orange

17. Vadilal Industries Ltd.

Vadilal Mango, Pineapple, Orange

18. Himgiri Foods Himgiri Mango, Pineapple, Orange

19. Lakhanpal Foods VAFA Mango, Pineapple, Orange

20. WIMCO Ltd. Sunsip Tropical Fruits Kioces

21. Tims Products TIMS Mango, Pineapple, Orange, Guava

22. BEC foods ROLZ Mango, Mixed Fruit Juices

23. The Maharashtra Inds. Development Corp. Ltd.

NOGA Pineapple Agro.

The above mentioned list consists of the brands noticeable in metros and as such there are a large number of small canning units scattered all over the

country catering to niche markets.

Industry analysis:

The Rs 100 crore packaged fruit juice market is estimated to be growing at

20% to 25% annually, with Tropicana and Real holding 40% market share

each.

The market can be categorized in terms of product content and there are

three major product contents available.

Drinks: Juice with pulp content less than 40%,

Nectars: Juice with pulp content between 40 - 80%,

Juices: Juice with pulp content more than 80%,

The canned juice market initially covered brands like NAFED, Noga,

Midland, Gold Coin and Druk. These were fruit juices and nectars and not

drinks. But they did not make a mark in the market due to reasons such as

high price, unattractive packaging and lack of right promotion programme.

Parle Agro’s Frooti, a mango drink, was introduced in the tetra pack in 1985 and since then has been a leader in its segment. The market has suddenly picked up since 1994-95 and a few players have emerged as market leaders

Market Analysis Summary:

One can sense an evolution that the industry has seen with development in

the tetra- pack market, there also has been a natural progression from drinks

to nectars to juices and while traditionally fruit drinks were aimed at

children, the new brands like ‘Onjus, Real, and Life’ have focused on young

adults and professionals.

Although fruit drinks focus strongly on out of home consumption, the juices

and nectars have been concentrating on takeaways or in-home consumption

with more choice coming in, the tetra- pack market is likely to witness

further segmentation.

Packaged fruit juices are getting recognized as social drinks now, with

dominant consumption being observed in the company of family and

friends. People have started to perceive fruit juices as anytime beverages,

with consumption being spread more or less evenly between the mid

mornings, afternoons and evenings. And generation now is as much inclined

to sipping fruit juices as colas, with teenagers driving the maximum trials.

If the findings of a usage and attitude study conducted by market research

agency Indica Research across 1200 adults in Sec A and Sec B households

in Delhi and Mumbai are anything to go by, then its not just champagnes

and colas that qualify as social beverages.

Flushed with funds after selling of its portfolio of soft drink brands, Thumps

Up, Limca and Mazza and bottling facilities to Coca-Cola the company has

enough cash and this is evident since it has not got listed. It also has a

massive distribution network to reach its end consumer. Besides, the

goodwill of the Parle brand is a great help in its new ventures.

The ‘fresh n juicy’ Frooti brand, is dominating the packaged fruit based

drinks category since its launch in 1985. Frooti Mango, which has 75%

market share in tetra packs, grew by a modest 4% in 2001 according to

ORG-Marg data. Larger pack sizes (1 liter) and more pure juices (such as

orange and pineapple) would soon appear under the Frooti brand, taking on

the existing competitors in these flavours and sizes – brands such as

Tropicana, Real and Onjus.

Frooti has always been positioned as a drink for kids but now the company

is looking forward to position it as a drink for the youth, especially, the

college going teenagers. This was the basic rationale behind the Digen

Verma Campaign, where a real life, down to earth person, who, like any

college student likes to bunk classes, is a good sportsman and is a popular

figure in the college, with whom the teenagers could actually associate

themselves with Digen Verma.

Parle Agro’s product portfolio includes Appy, Frooti and N-Joi (a milk base

drink, which are priced at Rs 10. New PET bottles have been introduced in 1

liter and 500 ml for mango Frooti at a price of Rs 28 and Rs 18 respectively.

It has recently introduced a green mango flavour in the tetra pack and is also

priced at Rs. 10. Parle Agro’s has an enormous distribution reach of 10 lakh

outlets, including leading hotels and restaurants, eateries, super – markets,

and paan-shops. Meanwhile, Parle Agro is planning to tap the rural markets

with its strongest brand Frooti. There are plans to set up a separate

distribution in the product itself.

In keeping with market sentiments, cola biggies Coca Cola and Pepsi, too,

are focusing on innovation in their non-cola portfolio. Coca Cola has

launched Maaza in pineapple and orange variants in 125 ml tetra packs and

large family packs. It recently started a new facility in Bareilly to cater to the

growing demand for Maaza in north and central India. It is learnt that the

company is also set to launch some "niche" products.

Parle Agro has seen a trend towards fruit-based products. Parle Agro spent

Rs 5 crore (Rs 50 million) to relaunched its flagship mango drink, Frooti,

with modified packaging and a new ad campaign. It launched a guava drink,

Frooti Guava, in Mumbai and other western regions in 65ml packs priced at

Rs 2.50. The company is now out with Appy Fizz, an aerated apple drink in

champagne-shaped PET bottles. Launched in Bangalore, it is being rolled

out in Kolkata and Chennai in 500 ml and 300 ml packs retailing at Rs 25

and Rs 18, respectively. The 60 million case fruit beverage market never had

it so good. Of the Rs 7,000-8,000 crore (Rs 70-80 billion) drinks market,

fruit beverages account for Rs 500 crore (Rs 5 billion), growing at 25- 30 per

cent annually. Like most drinks, summer accounts for 65 per cent of total

sales.

.

Market Segmentation

There has been no general acceptance of the product forms in the fruit

beverage market. The consumer is basically concerned if it is a fruit juice or

synthetically constituted product. Product segmentation, therefore, should be

clearly delimited.

Under the fruit drinks the first segmentation is between real fruit drinks

and synthetic drinks.

The real fruit drinks are based on natural fruit pulp or juice.

The synthetic drinks are synthetic products with fruit or other

flavors.

Broad taste preferences could be another way to define the market. The

market is at present also segmented on the basis of fruit pulp content. For

the purpose of segmentation, on the basis of fruit pulp content. For the

purpose of segmentation, on the basis of fruit pulp content, market can be

segmented as:

Fruit juice with pulp content more than 80%. Brands falling in this

category are Onjus, Real, Tropicana, etc.

Fruit Nectar with pulp content between 40% to *0%. Life and X’s

come in this category.

Fruit Drinks with pulp content less than 40%. Frooti and Jumpin

are the popular brands in this category.

Segmentation could also be on the basis of the benefits provided to the

consumer:

One benefit could be the nutrition content it gives to the

consumer so one market could be the health-conscious segment.

Second benefit is thirst quenching, so the other segment could be

those buying the drink or nectar for satisfying the thirst.

Another very broad segmentation can be on the type of situation in

which the drink or nectar is used:

People who are on the move i.e. Outdoor use e.g. those traveling.

People who are using it on the breakfast table as a part of their

menu i.e. in-house use.

Players very often choose one or more of such segmentations to differentiate

their product and target market and accordingly plan their distribution and

promotion patterns.

Target Markets:

The women of the house

Children

The teenagers

In-home consumption

Out of home consumption

The women of the house and children are an important influencing factor in

today’s scenario. As the KiwiJoos contains lots of health benefits, the

women who care for her family wants her family to be healthy and so are

they are targeted.

The children are attracted to the beautiful ads and demand for the products

as they want to experiment things just for the sake of it or for their self

satisfaction.

The teens are the most who like to try out new and different products.

Today’s teens are the most health conscious and put in lots of efforts to be

healthy. So even they are an important target audience.

In- home consumption:

This group of people buys fruit juices for home consumption and in many

case treated as grocery item and is on the shopping list and forms an

important part of their diet.

For an average Indian population juice consumption is seen as a luxury and

is a very urban phenomena as people in the urban are getting more and more

health conscious and relating and accepting juices as a healthy social drink.

These people are typically sophisticated and are exposed to the idea of

healthy living and are concerned of the well being of their families.

Usually the lady of the house takes the buying decision but she is influenced

by her offspring’s many times to the extent of brands and flavours.

One of the strong characteristics features which is common throughout our

target audience is that it is considered that juice is fresh only when it is

extracted on the spot for consumption purpose and it is considered to be

better than the packaged ones available in the market. This mind set will

have to be changed and the customers will have to be convinced that

KiwiJoos is fresh, has all the nourishments intact and is available without

the hassle of extraction for consumption.

Out of home consumption:

This consumption pattern is usually observed in people who feel the need to

quench their thirst, get refreshed or both. These types of people are

important of KiwiJoos as they are the people who will try the product in

small quantity and give us an in road in the home for in home consumption,

which is our focus area.

If this segment is satisfied then they will start personal use of KiwiJoos and

they will also act as a source of mouth - to - mouth publicity, which is

considered to be one of the best in its kind.

This segment is challenging one as there is a dual pattern of consumption

which mainly exists here i.e. firstly an individual decides if he/she would

like to have a fruit juice or a substitute like carbonated soft drinks, water,

flavoured milk, etc. then if he/she chooses fruit juice, they have to chose

from the available alternatives then he makes a choice among the available

brands with respect to the perceived value and its cost.

Such type of consumption is usually seen;

On roads i.e. in front of the general stores, railway stations, bus stands,

airports etc.

Entertainment zones like amusement parks, cinemas, parks, theaters, etc.

Eating-places like restaurants, college canteens, hotels, etc.

Working places like offices, aerobics classes, gymnasiums, places of

worship etc.

The key to serving this segment would be to be available and visible at

points of purchase and including the person to buy, with effectively

communicating to them that KiwiJoos is a healthy alternative to satisfy the

thirst ensuring taste, fun and good health.

It is positive that fruit juices are being perceived as anytime beverage.

Generation now is as much inclined to sipping fruit juices as colas, with

teenagers driving the maximum trials.

Market Research

Among packaged fruit beverages, the ‘awareness to trial, ratio of

PepsiCo’s Tropicana juice brand has been rated the highest. Up to 17%

of the respondents were aware of Tropicana, while the brand’s trial stood

at 11%, also, 8% of the respondents stocked the brand at their homes.

Other parameters where Tropicana edged out competitors included taste,

health, purity and nutrition, according to the study, Tropicana was also

perceiver as ‘reasonably priced’.

The average Indian may have a legendary weakness for mango, but when

it comes to preference of fruit-based juices; his choices are in tune with

international trends. Therefore it is orange juice that is the most preferred

fruit juice flavour in India, followed by apple, sweet orange and mixed

fruit.

The findings indicate that most packaged juice drinking consumers travel

abroad on holidays.

Other attributes of branded juice consumers include employment of

domestic help, ownership of assets and credit cards, and health

consciousness with 80% respondents going to aerobic classes or working

out at gymnasiums.

Understandably therefore, awareness and trial levels of packaged juices

are higher within the Sec A category, than among Sec B consumers, the

majority of whom rated these as aspirational.

Awareness levels are similar in both Mumbai and Delhi; more trials are

generated by Delhities than their counterparts in Mumbai.

The consumers are starting to perceive fruit juices at home. While 55%

of the respondents consumed 1- litre packs at home, 45% consumed

200ml packs.

The fruit beverage market has more acceptances in Northern and Western

India, which is due to the climatic conditions prevailing there with relations

to the rest of the country.

Present status:

Tropical fruits and flavours dominate the market, yet some consumers are

still hesitant to try unknown exotic flavours like cherimoya, guanabana and

carambola. Companies have found the best way to introduce exotics is in

combination with familiar flavours. A flavour combination that began in the

new age, 5% to 10% juice category, and has spread to other beverage

categories as well as to other products like kiwi, strawberry, etc. stating that

it was a small company that took the risk and won.

Smaller companies lead the way, as they are more willing to try exotic

flavours even though the larger companies have a larger staff and budget,

and can afford to search out the trends. The large companies tend to

introduce prototypes that are pretty well-tested. They are always interested

in the next flavour trend, but usually are not the first to debut it.

Fortified drinks are also gaining market i.e. the juice is processed and an

additional nutritious trait is added to enhance its wholesome value e.g. with

additional calcium, vitamin C etc.

One can notice the population in the country mainly in the cities becoming

more and more aware with regard to the nutritional aspect of life. This

knowledge, coupled with the consumer’s desire for a healthier lifestyle, has

greatly impacted the evolution of juice and juice-based drinks over the last

few years.

Sales Analysis:

Can Dabur Real Foods put more juice in the juice market? The company which has turned fruit juices into a Rs 60-crore (Rs 600 million) business has been turning on the taps in recent months -- and it hasn't been afraid to innovate.

It's heading off in untested directions by launching a new range called Coolers, which includes traditional recipes like Aam Ka Panna (a green mango drink). It has also launched a pomegranate juice and a watermelon drink. A jamun variant will soon follow.

Or, look at Pepsi Foods that has recently launched Tropics, a new range of what are called nectars in the fruit juice business. Pepsi has started out with a relatively unadventurous mango flavour but it will soon be putting guava and litchi on the shelves.

If that's not enough, Pepsi Foods is also aiming at customers with more exotic tastes with an orange-apple combination and a tropical fruit fusion drink (a mix of mango, guava, pineapple, orange and apple juices).

Dabur and Pepsi Foods aren't the only companies that are moving into overdrive in the juice business. As Indians take bigger swigs than ever before of packaged juices a slew of companies are hoping to grab a share of the action.

The result is that players like Dabur Foods, Pepsi Foods, Godrej Industries' Foods Division, Mother Dairy and even the small Ladakh Foods are betting

big money on this market by flooding it with new fruit beverages. "It's a huge market with its potential still to be tapped," says Sanjay Sharma, head of marketing at Dabur Foods.

The results are on show to anyone who steps into a neighbourhood supermarket. There are now racks filled with fruit juices, nectars and drinks (the difference lies in the pulp content -- juices are 100 per cent while drinks are below 20 per cent and nectars fall in between).

The swift growth in the market is attracting newcomers like Mother Dairy, which recently launched the Safal brand of juices. Safal is currently available in orange, mixed fruit, grape and an orange-apple combination. Ladakh Foods, makers of the Leh Berry seabuckthorn berry drink, has now also launched an apple-peach combination juice and a mixed fruit variant.

Even Godrej Industries Foods Division has introduced fruit juices under the Xs brand (which earlier only consisted of nectars) and a soya milk fruit juice based drink called Sofit this year. Parle Agro -- of Frooti and N-joi fame -- too is rumoured to be on the verge of new launches.

To add to the buzz, players are now looking at different pack sizes and price points. New entrants are also expected to join the fray in the Rs 500-crore (Rs 5 billion) organised fruit beverage market (nectars, drinks and juices combined).

One newcomer is likely to be Ahmedabad-based Pioma Industries -- makers of the Rasna brand of soft drink concentrates, which test marketed a diluted mango juice in Andhra Pradesh, but dropped the launch plan after a lacklustre response. Industry experts predict that the company may try again either this year or the next.

What's making all these players gung-ho about fruit beverages? For one, the fruit drink market (juice accounts for 30 per cent, nectar is 10 per cent and fruit drinks are 60 per cent of the market today) has grown at a 20 per cent to 25 per cent rate.

Of this, the more expensive juices segment has grown at a 40 per cent rate this year. It accounted for only 15 per cent of the fruit beverage market three years back. Says Jagdeep Kapoor, chairman and managing director, Samsika Marketing Consultants, "Consumer habits have changed drastically. They are looking for healthier options and nutritional value in the food they buy today."

Obviously, some segments are doing better than others. Fruit-based milk drinks {market size Rs 20 crore to Rs 25 crore (Rs 200-250 million)} like N-joi are currently stagnating. But fruit-based soya milk, another emerging segment reckoned to be worth about Rs 15 crore (Rs 150 million) to Rs 20 crore is expected to grow rapidly.

Godrej, which recently launched the Sofit brand, is experimenting with this market for the second time. Ten years back, its soya milk brand Great Shakes failed miserably because of its taste.

But it's not just the health fad that has led to the growth spurt. Cola sales fell dramatically after the pesticide controversy and this seems to have benefited the fruit beverage industry. Soft carbonated drinks (colas) grew 17 per cent in 2002 but fell 15 per cent in 2003.

Fruit juice in growth

IT'S a tale with a delicious twist. Compact International promoter D. K. Mittal was to meet the Director of the Defence Research and Development Organisation (DRDO) one fine morning in Ladakh in connection with a tender for setting up some shelters for army personnel. During the meeting, the Director offered Mittal a drink made of an unheard of herb called seabuckthorn. A little sceptical at first, Mittal took several sips before gulping down the entire glass. And he asked for more.

This chance encounter with the wonder plant sea buckthorn was the reason Ladakh Foods was set up as a separate company in 2002 to manufacture and sell seabuckthorn juice as Lehberry. Ladakh Foods today claims to be one of the fastest growing fruit juice companies in a fiercely competitive environment where big names such as Dabur and Pepsi already hold substantial market shares. Says Managing Director Varun Kumar, "Even when the fruit juice/nectar market is projected to grow at a scorching pace of 40 per cent, a Tetra Pak study has found that a whopping 86 per cent of the fruit juice market is still lying untapped."

Perhaps one of the main reasons why milk major Mother Dairy last week announced it is jumping on to the bandwagon of fruit juice. The company has launched packaged fruit juices under its flagship brand, Safal. Starting from Delhi, the product is scheduled for launched on a nation-wide scale in the months to come. The company says that having pioneered the marketing of fresh and frozen vegetable products backed by a modern produce handling and processing facility, Safal is now ready to script a new success story. This time in the packaged fruit juices category. "With the market growing at a healthy rate and with changing lifestyles and rising levels of health consciousness among consumers today, the demand for healthier products like packaged fruit juice is only going to increase in the times to come."

Says the director of a top retail chain in Chennai, "The fruit juice category is rapidly growing by over 50 per cent at some stores for us; it's seen as healthy compared to soft drinks. They are more hygienic than roadside fruit juices and are a big hit with yuppies. Also, non-sugar variants find favour with fitness freaks."

For Safal, with its expertise in producing and marketing various horticultural products in India as well as overseas, juices are a logical extension of its portfolio. With the launch of Safal juices, our intention is to grow the juice market further by providing a great-tasting product to the consumer at the right value," says Paul Thachil, Chief Executive of Mother Dairy. Ask Dabur Foods CEO Amit Burman where he thinks his company will be in the next few years and pat comes the reply: "We will be a Rs 200-crore company by 2006-07. And a large chunk of this growth will come from the Real brand of fruit juices, since Real contributes as much as 85 per cent to the company's topline. It will continue to be an area of focus."

However, realising that the fruit juice category, though growing at a healthy pace, needs to be activated further, Burman has just launched fruit drinks -

drinks where the fruit pulp concentration is only about 20 per cent - in typically Indian flavours of aam panna, watermelon and pomegranate. And having realised that price is still an entry barrier for a vast majority of the consumers, Dabur has priced Coolers about 15 per cent lower than Real.

Pricing is one of the major worries. Says Executive Director (New Business) at Pepsi Foods, Subroto Chattopadhyay, "Price is a barrier to this category because when you give fresh juice, packaging becomes critical. So, what the industry is now trying to do is offer different packaging to suit different price points while simultaneously working on ways to offer better quality and improved taste."

Pricing is also the downfall of fruit juice importers. Says A. V. Bhaskar, CEO, Adluri Foods, which distributes the Australian brand Berri in the

South, "It is difficult to make inroads into the middle class as it finds the prices prohibitive. Sales tax on imported products is not uniform across the States. In Tamil Nadu, it is 21 per cent, much lesser in Andhra Pradesh and Karnataka." So a one-litre bottle of Berri costs Rs 110 while a Tropicana is

in the Rs 75 range. PET bottles are another reason for the high prices. However, the retail prices are the same across all the States. Natural fruit

juices are a growing market and all players should have a level playing field, he says.

Taking advantage of the health consciousness pervading the market, Adluri Foods has introduced cranberry juice (something that the local brands also have done) and is testing a mixed vegetable juice and a cocktail of apple,

carrot and orange in the market. Pepsi recently launched Tropicana Tropics Mango Nectar, which is made

entirely from mangoes sourced from within India, as against other flavours for which sourcing has to be done from other countries. The introduction of

Tropics Mango Nectar will be followed by Tropics Litchi and Tropics Guava. Says Chattopadhyay: "India is now among the top ten markets for Tropicana worldwide. Significantly India is now an approved source for

mango pulp within the Tropicana worldwide system, and can soon emerge as a major sourcing base for other exotic fruits for Tropicana's international

market." Which means that if the fruit juice producers work on further development of backward linkages, the pricing issue plaguing this industry

can be better tackled. Besides, the industry has already begun to offer packaging solutions to address different price points like a 125 ml pack of

fruit drink Maaza from Coca-Cola India at just Rs 5 and a 500 ml Tropicana blend for Rs 25.

So where is the industry headed? Says Varun Kumar of Ladkah Foods: "We expect the market to touch Rs 170 crore by next year and we are targeting break-even within the next four years." So, while it took Dabur Foods seven years to make money on fruit juices, thanks to product innovation, expanding market and increased consumer preference for healthy foods, Ladakh Foods may repeat this feat in just four years. But even as the industry players are upbeat about growth prospects, there is an undercurrent of discomfiture, with talk of the new government thinking of levying eight per cent excise on food products including packaged fruit juice. So, while profit projections are unlikely to go completely haywire just yet, there might have to be some readjustments in the time frame within which these targets may be achieved.

Substitute:

Fruit juice companies have to face a two level competition i.e. on the first

level with the substitutes and the then the players within the industry. The

‘sip war’ is comprised of the following players with respect to India.

Soft Drinks (both carbonated and Non- carbonated soft drinks)

Soft Drinks are divided into carbonated and Non- carbonated drinks. While

Cola, lemon and oranges are carbonated drinks mango drinks come Non-

carbonated category.

Flavoured Milk (energy, N-Joy etc.)

Just like fruit drinks Flavoured milk is also positioned on the health

platform. Companies are trying to project it as a fun drink with added

flavours and innovative packaging.

Mineral Water

Fruit drink sellers consider even mineral water as substitute to their

offerings. The main assumption is that packs ensure quality delivery.

Other products

Milk by- products like buttermilk and lassi also serve as major substitutes.

They compete in terms of low price as well as easy availability. These drinks

are also considered important from the health perspective.

Main Competitors:

A host of brands are jostling for thirst space. Not just colas but beverages

and fruit juices of all hues are adorning shop shelves. From bottled iced-tea

to branded chhaas, fruit-based drinks and flavoured milk, beverage makers

have gone berserk with product innovation as new variants continue to flood

the market.

Fruit drinks are high on the swig list in summers as it is part of the health fad

sweeping the nation. Health conscious consumers are increasingly giving

aerated drinks the go by and making a beeline for fruit-based concoctions.

Moreover, sporadic controversies about pesticide-infested cola drinks are

said to be driving consumers towards fruit-based drinks as a safer

alternative. That is why even existing players are going all out to pour out

new flavours.

Dabur:

Dabur Foods that was set up in 1997 has brands like Hommade, Lemoneez

and Capsico in its basket. The Rs. 37 crore Dabur Foods ltd, a wholly owned

subsidiary of Dabur India ltd ahs two brands of juice in the market, they are;

Real

Real Active

For its Real brand, Dabur is focusing on increasing in home consumption by

targeting mothers and children. It is priced in the range of Rs. 60 to 65 [1

liter] and Rs 15 [200ml] except for Guava that is sold in the range to Rs 65

to 70 and Grape that is sold for Rs. 70 to 75. Its ingredients are water, fruit

concentrate, sugar, citric acid and flavours of;

Grape, Guava, Orange, Pineapple, tomato, Mixed Fruit, Litchi and

Mango.

The Real Active brand is targeted towards fitness- crazy young consumers.

The drink is positioned on the health plank. It was launched towards the end

of 2002. At the same time, the company plans to position Real Active as its

premium juice brand, while Real would be targeted at consumers belonging

to socio economic categories B and C also. It contains only fruit concentrate

and water. It is priced at Rs. 68 and 70. It is available in the Flavours of;

Apple and orange.

The company was eyeing a turnover of Rs. 60 crore in the year 2001 -02,

which is an increase of nearly 50%. According to the company it ahs seen a

growth of 44% in the financial year 2001-02 as compared to 34% in 2000-

01. The company plans to increase the advertising spends for the brand by

nearly 40%. Today the advertising and marketing budget for the brand by

nearly Rs 8 Crore. The company’s thrust is on increasing in-home

consumption therefore they are mainly targeting the mothers and children.

However, the company has restricted its activities in the urban areas only

and wishes to fully consolidate markets in the cities before looking at the

small towns and rural areas Dabur Foods claims to be the market leader in

the pure juice category such as Punjab, Delhi, Haryana, etc.

PepsiCo:

The Pepsi operations in India are now the part of the new Asian division of

PepsiCo Beverages International formed by the merger of PepsiCola

International, Tropicana and Gatorade, the sports beverage company

acquired from Quaker Oates. Earlier, India was one of the eight business

division of the beverage company that used to report to PepsiCo

International in New York directly. Now it reports to PepsiCo Beverage

International Asia in Hong Kong. PepsiCo Beverage International is a

division of PepsiCo Inc. This move has been prompted by the need to give

greater regional focus to new products like Tropicana and Gatorade so that

they become a key element of the overall portfolio of the US beverage

major.

PepsiCo Inc. is one of the world’s largest food and beverage companies. The

company’s principle businesses include:

Frito – Lay snacks

Pepsi-Cola beverages

Gatorade sports drinks

Tropicana juices

Quaker Foods

Pepsi India is already working on a strategy to launch a bevy of Gatorade

products in the country by the end of this year. These are as follows:

Gatorade Thirst Quencher

Gatorade Nutrition Shake

Gatorade Energy Drink

Propel Fitness Water

Gatorade Energy Bar

It is also planning to give a major thrust to the juice business through the

launch of a host of new products under the Tropicana brand name i.e. on the

health and energy platform. PepsiCo has so far invested around Rs. 100

Crore inn ready to drink juice segment where the company has two brands

Tropicana & Slice. It has 14 plants in India producing fruit juices & 2 of

them work on tetra pack.

Tropicana:

Tropicana entered the country in 1998. Tropicana is currently imported in a

concentrated form, which is later reconstructed at a plant in Baramati, near

Pune and vacuum packed into tetra packs after paying an import duty. It

covers around 18 cities of India. The factor of its success is that it has a

tightly controlled distribution system on top of an equally controlled

production and this in turn helps it keep its taste constant and the company

boasts of it too.

Tropicana Beverage Co. recently announced the company’s inclination

towards bringing in an entire series of juices and other health drinks from its

international portfolio into India in the coming years. The Tropicana brand,

per se, has been positioned on the ‘health’ platform.

Pepsi also plans to give its juice brand – which has seen many hurdles in the

nascent and niche juice market – a renewed thrust in the coming days. A

price revision of the brands is also on the anvil.

Since 2001, Tropicana roped in celebrities in the field of nutrition and health

to sell its brands. Under which they got renowned people in the field of

health to recommend their clients to use their brand. The list of names

included the likes of Anjali Mukherji, Sabina Sehgal Saikia and Vandana

Luthra, who promote the brand, positioned as a health drink, to their

upwardly mobile clientele. Even celebrity doctors and pharmacists were

included in its list of marketers. Tropicana is also sold through various

health clubs like Talwalkars, Personal Point, etc. in Mumbai and Delhi. In

the past as a part of its promotional activities, the company had conducted a

‘Tropicana Health Run’ in the capital, slated for World Health Day, which

was on April 7, 2001. Tropicana also runs a programme called ‘The

Tropicana Club’ under which every time one buys a pack of Tropicana he

earns points which he can collect and exchange for a wide range of gifts and

also, as a member he gets unique offers, exciting gifts and interesting

information on keeping fit and looking good.

The company is seen to intensify its distribution network, with a greater

thrust on large institutions. Apart from retail and consumer – level

promotions, Tropicana is being promoted through health bulletins and health

leaflets. The company intends to continue with its ‘unconventional’ retail

thrust. Apart from the 20,000 to 25,000 outlets across 18 cities that

Tropicana has a presence in, the brand is being placed across gymnasiums,

fitness centers in 5-star hotels, coffee shops, airlines, hospitals, offices and

health stores. These points of consumption are not consequential in

providing high volumes, but important from the imagery point of view.

Typically, non-retail stores have been contributing 12 – 15 % of the brands

sales. Tropicana evokes a high brand loyalty among health – conscious

middle and upper-middle class segments. The company is seeking to project

itself on the health platform and has an ad spend of around 20% of its sales.

The brand’s existing tagline of ‘Taste of Good Health’ has now got an

extension statement of ‘Don’t forget the juice’, ‘Tropicana 100% pure fruit

juice’. Tropicana is packaged in a 200 ml slim pack [which replaces its 250

ml pack] and 1-liter in a flat pack tetra pack. The company is seen to run

promotions in coordination with its other offering like a scheme where 16

gm pack of Lays Magic Masala that comes free with a 200 ml pack of

Tropicana. Worldwide, Tropicana has a host of juice brands under its belt.

Brands like Twister, Dole, Looza, Fruvita and Juice Bowl, which could find

their way into the Indian market in the coming years. It has decided to make

changes in the composition of its juices to suit the Indian taste buds. For

instance, realizing that Indians like a sweet flavour, it decided to launch a

separate sweet orange juice product specifically for the Indian market. Since

it could not dilute its juice content, it decided to substitute part of it with

grape juice to make it sweeter. Even it’s launched tomato and mixed fruit

juices have been altered to suit the Indian palate.

Currently, in terms of market share, Tropicana is believed to trail behind

rival Real (Dabur) but is not far behind and also has close to 40% market

share of the estimated Rs 100 crore branded juice market.

Pepsi sets the pace for backward integration of Tropicana, as a first step

towards backward integration for its pure juice business Tropicana is

foraying into contact farming of citrus fruits like oranges and Keanu.

Punjab- Jallowal – has been chosen as the location for the project. The 3

phase project involving trials, nursery and contract farming, is being pursued

jointly by Pepsi and the Punjab Agro Export Corporation. Through in its

infancy at the moment, the project vision however is of about seven years. If

successful, it would mean 100% localization of orange juice and it becoming

the supply center to other regions.

A present Tropicana has the following flavours:

Orange, Nature Sweet, Apple, Grape, Pineapple, Tomato, Mixed Fruit.

Slice:

PepsiCo in 2002 poised to make deep inroads into juice drink segment in

India with seven new variants of its ‘Slice’ brand. For the first time in

company’s history, a ‘Litchi’ variant of Slice was introduced. Apart from

that, a guava and Orange flavours was also being offered. Apart from 200 ml

slim line cartons priced at Rs 10 each, Slice juice drinks is subsequently

made available in 250 ml returnable glass bottles as well.

The company invested significantly to bolster the Slice brand in the year

2002 and plans to invest heavily through the year while Slice is now

available in litchi, orange, mango and Guava flavours, they are expected to

be soon joined by Slice Cocktails.

PepsiCo is sourcing litchis from Muzaffarpur, guavas from Karnataka and

Allahabad, and mangoes from Ratnagiri.

Management Decisions

Marketing Mix:

Marketing mix comprises of approaches to price, distribution, advertising

and promotion.

Pricing:

Pricing is one of the major worries. Price is a barrier to this category because

when you give fresh juice, packaging becomes critical. So, what the industry

is now trying to do is offer different packaging to suit different price points

while simultaneously working on ways to offer better quality and improved

taste. Pricing is also the downfall of fruit juice importers, which distributes

the Australian brand Berri in the South, "It is difficult to make inroads into

the middle class as it finds the prices prohibitive. Sales tax on imported

products is not uniform across the States. In Tamil Nadu, it is 21 per cent,

much lesser in Andhra Pradesh and Karnataka. So a one-litre bottle of Berri

costs Rs 110 while a Tropicana is in the Rs 75 range. PET bottles are

another reason for the high prices. However, the retail prices are the same

across all the States. Natural fruit juices are a growing market and all players

should have a level playing field. Taking advantage of the health

consciousness pervading the market, Adluri Foods has introduced cranberry

juice (something that the local brands also have done) and is testing a mixed

vegetable juice and a cocktail of apple, carrot and orange in the market.

Pepsi recently launched Tropicana Tropics Mango Nectar, which is made

entirely from mangoes sourced from within India, as against other flavours

for which sourcing has to be done from other countries. The introduction of

Tropics Mango Nectar will be followed by Tropics Litchi and Tropics

Guava. India is now among the top ten markets for Tropicana worldwide.

Significantly India is now an approved source for mango pulp within the

Tropicana worldwide system, and can soon emerge as a major sourcing base

for other exotic fruits for Tropicana's international market.Which means that

if the fruit juice producers work on further development of backward

linkages, the pricing issue plaguing this industry can be better tackled.

Besides, the industry has already begun to offer packaging solutions to

address different price points like a 125 ml pack of fruit drink Maaza from

Coca-Cola India at just Rs 5 and a 500 ml Tropicana blend for Rs 25.

So where is the industry headed? It is expected that the market

will touch Rs 170 crore by next year and we are targeting break-even within

the next four years. So, while it took Dabur Foods seven years to make

money on fruit juices, thanks to product innovation, expanding market and

increased consumer preference for healthy foods, Ladakh Foods may repeat

this feat in just four years. But even as the industry players are upbeat about

growth prospects, there is an undercurrent of discomfiture, with talk of the

new government thinking of levying eight per cent excise on food products

including packaged fruit juice. So, while profit projections are unlikely to go

completely haywire just yet, there might have to be some readjustments in

the time frame within which these targets may be achieved. With people

turning more health conscious, the non-carbonated beverage segment has

become one of the fastest growing and most exciting businesses at the

moment. For some time now, manufacturers have experimented with some

of the formulation and taste issues, offering the consumers better tasting,

more healthful alternatives. Evolving from drinks containing a hint of herbs

or vitamins, beverages have become an important delivery vehicle for

efficacious amounts of nutritional ingredients. Beverages are unusual

products in that everyone expects to try new varieties, even from established

brands.

Price is the marketing mix element that produces revenues, the others

produce costs and it is also one of the most flexible elements as it can be

changed quickly, unlike product features and channel commitments. India is

known as a price sensitive market i.e. an Indian customer wants more value

at low price.

The company’s objectives with regards to pricing is to survive the resistance

from the existing players, maximize profits and increase its market share in

the five cities it is catering.

KiwiJoos’s pricing will be a premium pricing. As we are targeting the sec A

and sec B of the middle class and also the Elite class the price must be

affordable to consumers. Consumers are ready to shell out little extra money

for the exotic and classic drink that has many health benefits. Even though

we are catering only one flavour initially the pricing is close to the

competitors pricing.

KiwiJoos will be priced as follows:

250 ml – Rs.30

01 liter – Rs. 90

1.2 liter – Rs. 130

02 liter – Rs. 180

05 liter - Rs.400

Distribution:

The distribution or reach factor is a marketing mix element that needs to be

monitored over a period of time. Unlike product improvement or positioning

strategies that are extremely sensitive to consumer preferences and changes,

distribution inertia could dawn on the company over a period of time. An

attempt to link distribution with the changing environment will ensure that a

great deal of slow damage is averted. As consumer behaviour changes,

competition picks up and the product moves through its life cycle, new

channels may have to be considered, evaluated and chosen.

The company Shreeji Enterprises Pvt. Ltd has its KiwiJoos manufacturing

and packaging plant in Nasik. The Kiwi fruits will be imported from New

Zealand based company Zespri International Limited.

The company will be moving in the first phases i.e. the first year we will

have an aim of entering only few major cities of India and establishing our

brand with Kiwi flavour which will be seen as a launch-pad for our other

offerings i.e. flavours. The initial launch will be in the following cities:

Chennai

Bangalore

Delhi

Mumbai, Pune and Nasik

Kolkata

The transportation to the cities will be basically through rail and road

depending on cost effectiveness. The inventory level will be decided with

respect to the season and in coordination with the distributor and the

company representatives. The company will have its representatives

positioned at each city that will coordinate with the distributors and the

company will interact with the retailer’s inorder to ensure the company first

hand information about the product with relation to the customers. There

will be 5 representatives stationed at each city who will have to make 40

calls a day in their respective territories.

To keep the channel active and result oriented following initial steps will be

taken;

They will be given discounts on cash purchases.

The goods will be available on credit basis also.

Retailers have to be segmented based on Volume, exclusiveness,

complementary products handled and basic requirement of refrigeration

facilities, which is a must for our product. These factors will be given

consideration before incentive schemes are worked out.

KiwiJoos will be marketed through different channels. All different sizes

will be available at places where buyer buys products in greater volume;

Supermarkets

Discount stores like Big Bazaar, Apna bazaar, etc.

Hyper Mall

Petrol pumps

Chemists, General and Convenience stores

Health clubs, Gym, Gymkhanas etc.

Entertainment zone: Theaters, Cinemas, Parks, Amusement parks, Game

Parlours etc.

Ice-cream Parlours

Hotels & Restaurants

Bakeries

In certain areas such stores may not exist so in these areas the bottles will be

available at specific stores at the discretion of the representatives and

distributors, these stores should be able to serve the basic idea.

The effectiveness of our channel will only be known when we assess our

chosen channel on the following criteria:

Are the customers expectation been met by us?

Are the channels serving the targeted segments?

Are our intermediaries motivated?

Distribution patterns:

Distribution network and reach are vital factors for success of the brands in

the fruit beverage market. It is mainly the distribution strategy that the

companies are focusing upon.

The distribution is mainly done through stockist. The companies also have

franchises that work as a separate entity. Some companies also have their C

& F agents to give the product to the distributors, who further distribute to

the retailers. To co-ordinate the things properly with the distributors,

companies keep their own field force.

Below the figure shows the many ways the companies in this industry are

seen to be operating:

The urban Indian retail sector has traditionally been structured around three

small retail entities—the grocer, the general store and the chemist.

The grocer stocks non packaged, unbranded commodities such as rice,

flour, and pulses, as well as branded fast moving consumer goods

(FMCGs)

The general store stocks only branded, packaged FMCGs.

The chemist, a part from dispensing pharmaceuticals products, sells

branded FMCGs such as personal care products and health foods.

Departmental stores and supermarkets.

Others:

Bakeries and confectioners

Fruit juice/ tea stall/ vending machines

Company’s Manufacturing Facilities

Franchises Stockist Agent

Retailer

End User

Distributor

Ice-cream parlours,

Electrical and hardware stores and

Non-food boutiques, etc.

These retail outfits stock branded FMCGs that gel with their businesses.

Supply chain integration does not quite matter in the case of the small

retailer because of the small scale of his operations. He normally deals

directly with wholesalers with whom he is able to negotiate rates.

Retail consolidation (consolidation of buying power) among supermarket

operators is unlikely to hurt small retailers simply because it will affect

manufacturers directly, who will not want to compromise on the distribution

reach to offer large volumes to a few big retailers.

The small retailers form an integral part of the wide distribution network set

up by the large FMCG companies. Marketers have also found that private/

store brands from supermarkets can prove to be a threat to their own brands

and hence, desist from encouraging retail consolidation.

Marketing Strategy:

Marketing Summary:

Pursuant to our company policy stating "Quality First, Credit Prominent",

we process our KiwiJoos with strict production standard, quality control and

sophisticated processing technology, we at all time provide our consumers

the natural and healthy Kiwifruit juice.

KiwiJoos is a new flavour in the market and the company is also new so its

marketing budget cannot be limited. So the strategy will be to enter the

market with a big bang. Developing visibility and brand equity is the key.

KiwiJoos will be advertised in different media with respect to our target

market i.e. the women of the house and children who are an important

influencing factor in today’s scenario. The teens are the most who like to try

out new and different products so even they are an important target

audience.

In addition to the advertisements which will be used to drive consumer sales,

KiwiJoos will leverage a networking campaign with respect to the

distributors and sale promotion at the points of purchase i.e. local

restaurants, gyms etc. to drive commercial sales.

KiwiJoos will be on the shelf in all markets by 15th February, the company

will start supplying its stock by 6th February. The promotional activities will

start from 12th February.

Mission:

The mission is to provide the highest quality of fruit juices. We exist to

attract and maintain customers. When we adhere to this maxim, everything

else will fall into place. We will ensure that our products will exceed the

expectations of our customers i.e. we develop a competitively superior value

proposition and value- delivery system.

Marketing Objective:

Maintain positive and steady growth each month.

Experience an increase in new customers i.e. we have to ensure that our

products have a high trial rate which will help us to turn these new

customers into long term customers.

Generate brand equity at the markets we are catering to as well as within

the supplier and distribution networks.

Sales Promotion Strategy

Promotional Strategy:

The promotional efforts will be on two fronts i.e. on our direct customers

and the end consumers. This should ensure KiwiJoos a push from the

distribution and a pull from the customers.

All our promotional efforts should serve some basic criteria like the

activities should carry a feel good appeal and should enhance emotional

attachment of the target with KiwiJoos.

KiwiJoos will be advertised in cost effective media like newspapers, radios,

hoardings, at bus stands, and the most important and effective will be

through TV advertisements. There will be some cosmetic variations of these

advertisements when they are launched across the country. Regional

celebrities who appeal to consumers may also be used in advertisements

intended for various regions these celebrities will represent our positioning.

Sales Promotion:

We will be tying up with few other marketers and piggy backing our product

on theirs; this is expected to give us access to the shopping list and homes of

our target. Marketers that we intend to tie up with will be the ones that have

a place in the shopping list of the lady of the house e.g. branded wheat, salt,

frozen vegetables, magazines etc.

The company will also tie up with supermarkets and other stores, which are

mainly volume oriented, by piggy backing our product on their in-house

products. Both the above routes will help us in sampling our products to our

target customers and in the right manner.

Attention will be given to the presentation part too, POP materials, store

displays, stickers etc. will be used to create awareness at the retail outlet.

Advertising:

Advertising will be exercised with a media mix, which will consist of:

Print Media:

Print Media will be used in the form of news papers of various languages.

Print media will be mainly used with a purpose of communicating and

complimenting our sales promotion schemes to pursue and gives us

visibility.

Audiovisuals:

Television as a media will be used to inform the qualities and benefits of

KiwiJoos and give us visibility and build the brand image with the

customers. The combinations of TV channels will be used at different

intervals. The channels will be selected keeping in mind our target i.e. the

lady of the house – channels showing good TRP ratings for their soaps; the

influencers i.e. her offspring – music, movie channels, cartoons, etc.

Audio:

Radio will be a key element in our media mix as it is cost effective and will

cover our catering cities precisely. Under the brand name we will be running

contests, sponsoring programme, etc. This will help us reach out to our

target audience and the influencers.

Outdoor:

Outdoor communication will be done to help us get the visibility i.e. with

the help of Hoardings, which will be placed at areas that are prone to traffic

jams and at toll Stations. Railway stations in Mumbai will be a good target

area for such print media as it also has maximum visibility because majority

people travel daily by trains to work. In respect of this media the company

will be very selective.

Posters:

Posters will be created by the company during the events and will be

carrying the company logo, brand name and the picture and the tag line.

Public Relation:

The company will be a part of events and/or will also be organizing its own

events. The events will be chosen on the core values of community relation

and whole family participation. The company will be a part of children and

youth involving events like college/ school festivals, meets, etc and only use

these as a platform to getting closer to their influencers and sample their

product at a concession or commission basis.

World Wide Web:

We will make our presence felt on the internet by hosting a website for the

brand KiwiJoos which will be named “www.kiwijoos.com” which will;

The website will be imparting the information about our

products, quality and values i.e. history of kiwi, its cultivation,

its benefits etc.

Run online contests

Give health tips

Give recipes

Opinion section - person is free to express his thoughts and

feedbacks

The website will be a tool to get closer to our customers and understand

them better and will serve an entertainment and utility value.

Customer Behavior

CONSUMERS PURCHASING BEHAVIOUR :

The availability of consumer food products in India has grown significantly

since the economic reforms beginning in 1991. Indian consumers can now

purchase domestically produced cheese, wine, potato chips, ketchup, soft

drinks, candy bars, breakfast cereals, ice cream, donuts, biscuits, frozen

meats and vegetables, instant noodles, jams and jellies, packaged grains and

pulses, soups and some ready to eat packaged and frozen meals. Availability

of fresh produce is seasonal. Retail food sales in India were approximately

$132 billion in fiscal year 1998 and are growing at 13 percent per year,

according to the Ministry of Finance. The retail market for fruits and

vegetables has grown at over 20 percent per year in the past few years.

Retail sales of subsistence foods such as cereals, breads, pulses and edible

oils have started declining. As incomes have risen, there has been a shift in

consumption, from subsistence to higher value foods.

Many Indians are vegetarian by tradition; moreover, many can only afford a

vegetarian diet. Meat may be regularly consumed by less than 30 percent of

the Indian population, due to its higher cost and a predominance of

vegetarianism and Hinduism. However, only 20 percent of the population is

strictly vegetarian. Non-vegetarians typically consume meat only once or

twice per week. Higher income consumers rely almost entirely on domestic

help for their shopping. The domestic help buys staples, vegetables, and

fresh foods from local small grocers and vendors, and other products from a

variety of general merchants. The middle class has diverse purchasing

habits.

Many families on the upper end use part-time domestic help to

do their shopping, often necessitated by a growing pattern of households

with two working parents. Many families at the lower end of the middle

class continue to do their own shopping. The poorer segments of the Indian

population tend to buy basic staples with the first part of their paychecks,

which typically are distributed on the first few days of each month. During

the month, the poorer customers will buy whatever fresh foods and

consumer goods they can afford, often filling in at the end of the month with

some additional staples purchased on credit. In all classes, women do most

of the shopping and make most of the food purchase decisions. Most

consumers prefer local shops to larger supermarkets because of proximity,

personal attention, and lower prices. Nearly 95 percent of consumers

purchase fresh fruits and vegetables from a local market or street vendor.

Additionally, traditional markets are considered the freshest source for

foods. Indians have a strong preference for freshly prepared foods, and

most have a definite prejudice against packaged, branded, or processed

foods, believing them to be lower in flavor and nutrients. Many households

will not even reheat foods, and make only enough for one meal. This is

mainly to avoid waste, but also to ensure freshness since refrigeration is

available only in wealthier households. However, with urbanization, rising

incomes, more working women, the arrival of large food multinationals, and

a proliferation of fast food outlets, acceptance of packaged food products is

increasing. Packaging of imported goods is typically better than that of

domestic goods. Also, India has many regional differences in food tastes

and preferences. For example, residents of Mumbai (formerly known as

Bombay) are more willing to try new foods than those in other Indian cities.

As Mumbai is home to a more progressive and skilled labor force than other

parts of India, many multinational corporations test market new products in

that city. Consumer spending has grown at an average of more than 11.5% a

year for more than decade as in most developing nations, a large chunk of

Indians consumer expenditure is on basic necessities, especially food-related

items. Hence it is not surprising that food ,beverages and tobacco account

for as much as 50% of consumption expenditure in 2006.the remaining 50%

related to non-food items is expected to rise, due to the growth of percapita

income.

There are three significant trends in Indian retailing. First, the number of

small outlets has grown over the past few years, bucking the worldwide

trend toward retail consolidation. Second, Indian retailers have started

promoting brands and using basic merchandising techniques. Some of these

stores are even charging slotting fees for shelf space. This is in stark contrast

to the small shopkeepers who paid personal attention to regular customers

and strongly influenced their buying decisions. The shopkeeper’s

recommendation was important because he often did not display all the

items he stocked. Indian consumers who choose branded foods are less

likely to seek the shopkeeper’s recommendation. Lastly, retailers have also

started offering home delivery services in urban areas.

CONSUMERS DEMAND FOR FRUIT JUICES :

As from the above analysis it if found that the 78% consumers consume fruit

juices and they are aware about it but the apparent side says 18% consumers

who are aware of fruit juices like Real,Tropicana,Leh Berry, Jumpin, N-Joi

but not aware about the other fruit juices in the market because of their less

demand. The demand for fruit juices increases because of the growing

income of each individual and increase in purchasing capacity. The change

in consumption food habit has really affected the demand of fruit juices. The

brand name which ha s great influence towards sales. Most of the people

says that real is the best brand and they will go for real. Lesser people then

real want to go for Tropicana and subsequently the demand decreases among

jumpin and N-Joi . The various campaigns organized by the fruit juice

companies have also increased the consumption demand for fruit juices. It is

obtained from the primary research that 65% of consumers prefer Real juice

as compared to Tropicana, Leh Berry, Jumpin and N-joi. It is also observed

that n-joi has lesser consumers attracted towards it shows the lesser demand

by consumers according to the various parameters which are explained in the

other other analysis as follows. According to the demand of the product by

the consumers the producers increase their production by keeping in eye the

past demand and competitors demand in the prevailing market. Leh Berry

and Tropicana has the same demand in the market because of their retail

price in the market for which the consumers buy it. The promotional factor

which as great importance towards the demand of the fruit juices.

Consumption and buying Patterns:

The Indian lifestyle has a traditional predilection for fresh fruits and

vegetables or those processed at home. People go in for fresh fruits vending

from kiosk fountains, which produce instant juices from fresh fruits in the

presence of the consumer.

One reason is the unavailability of hygienically produced and well-

preserved products with the use of preservatives. The fact that it is packed

denies its freshness. This was also a reason why some of the real but branded

fruit juices launched in the late 1980’s and early 1990’s did not succeed.

Taste is often the secondary consideration in the Indian market for

beverages. Fruit juices also lose on roughage, which is an important part of

fruit nutrition. Few people know the difference between a juice and nectar.

In general, the Indian consumers have become health conscious now and are

looking for healthy and natural appetizing juices. They are moving away

from synthetic drinks to natural and wholesome fruit juices. At present;

Per capita consumption of juices in India is estimated at a fraction of a

litre i.e. 200ml.

The consumption of fruit juices in take home packs is estimated at 17250

mnlt.

Consumers go for convenient and economy products.

So small packs are well suited for travelers and children and large

take home packs for families and price conscious people.

Availability in chilled form and brand awareness plays a crucial role in

purchase decision.

This has implications for the need for availability of the product

and in the right form.

While there is no aversion to consumption of fruit beverages by any

group, the main consumers of this market are people in the age group of

30 and below.

Young adult and teenagers predominantly consume tetra pack

drinks.

Brand loyalty is very low, as all the products taste the same.

But brand loyalty is high in case of kids.

▫ Though there is a lot of difference between brand awareness

and brand loyalty.

Consumers are money conscious where the purchase of fruit beverages is

concern.

Consumers are not ready to explore the market.

They do not want to change their taste and are stuck to their old

brands.

Orange and other drinks are slowly picking up and breaking the

loyalty towards old brands.

Product adaptation:

A recent article in The Economist reveals that savvy retailers have made a number of breakthroughs when it comes to the science of persuading people to buy. Their discoveries provide fascinating food for thought for online marketers too…

U.K. based Sainsbury’s is probably one of the leaders when it comes to understanding and taking advantage of buyer psychology and consumer behavior.

Sainsbury’s has, for example, identified the area outside its supermarkets as

a ‘decompression zone’ where people need to transition into a ‘buying mode’ before they’re ready to buy. As such, Sainsbury’s doesn’t bank on people buying the crates of discounted goods located in this area, but uses such promotions to help ‘warm’ people to buying.

Then, after someone makes it through the ‘decompression zone’ Sainsbury’s presents shoppers with the choice of browsing through magazines, books and DVDs in the ‘chill zone’ – an area designed to tempt consumers and slow them down – or continue on to the fruit and vegetables area.

Why are shoppers immediately channelled into the fruit and vegetables section? Because buying wholesome, fresh food gives them a good vibe and helps remove any guilt they may later feel when confronted by less wholesome items!

Supermarkets such as Sainsbury’s also use a host of other techniques to keep people in their stores for longer. This is based on evidence that the longer shoppers stay in-store, the more they’ll buy.

Although not mentioned in The Economist article, it’s certainly no surprise that smart supermarkets avoid displaying clocks on their walls. Like casinos, supermarkets have learned that when people lose track of time, they tend to take longer… and spend more money.

Another example of supermarkets aiming to delay shoppers and tempt them with more items, is placing everyday goods, such as milk, at the back of the store. The idea is to force people to walk through the aisles so they may be tempted by other products as they walk to and from such sections.

Of course, you may already know about this tactic… but did you also know that supermarkets purposely place popular items halfway along the aisle to force shoppers to take longer (and face more temptations) to reach them?

Such tactics reflect retailers’ greater understanding of consumer behavior. Among other things, they have derived this greater understanding from utilising such devices as the humble mobile phone.

In one application of mobile phone technology, U.K. based Path Intelligence tracked people’s phones at Gunwharf Quays, a large retail and leisure centre in Portsmouth.

No, Path Intelligence didn’t eavesdrop on people’s conversations. Instead, they tracked where people were, and how long they spent there, based on the locations of their mobile telephone handsets. These handsets could be located due to their transmissions to cellular networks.

And the study confirmed the idea that the more time people spend in store, the more they buy: when shoppers’ ‘dwell’ time increased by 1 percent… sales rose by 1.3 percent.

Supermarkets are also using security cameras to track peoples actions in their stores. By implementing such technologies they have been able to derive such information as the age and gender of customers, as well as their buying habits in relation to certain kinds of products. More on that below.

Another tactic used by modern supermarkets is to have an in-store bakery. Quite apart from selling baked goods, in-store bakeries are designed to produce the aroma of freshly baked bread. This tends to make people feel hungry and motivate them to buy not only bread, but also other food.

Indeed, while most advertising is based on visual stimuli, retailers are increasingly investigating the impact of sound, smell and touch on buyer behaviour.

SWOT Analysis:

Strengths:

Innovative flavour hence we are bound to get the attention with proper

communication.

Committed, capable and ambitious management.

We can gain incentives as we will be a SSI and so we can pass these to

capture more market.

Flexibility in our operations as initially we will be confined to few cities

so can focus our efforts on the tasks.

Weakness:

Our distribution set up initially will be weak when compared to the others

in the market.

a fruit is new in the market and not all people take the risk of

experimenting with taste.

We are entering the market with only one flavour and our next flavour

will be out only after six months of the first launch.

Our financial constraints with respect to our competitors demand that our

resources are used optimally.

We will not be able to price our product lower than the others in the

market as we have a longer distribution channel and managing this

channel also will be an important task. Also as our product is not

available in India its cost of acquiring increases and therefore it cannot be

sold at a low price in the initial stage.

Opportunity:

The market is in a growing stage and fairly small in terms of market

share as compared to other thirst quenching and healthy drinks so at this

stage our entry is expected to be noticed.

The market has a presence of only few players and they are not too

aggressive in their acts.

More and more people in the urban areas are getting health conscious and

are making fruit juice a part of their daily diet. Hence the market is

growing.

The government policies are expected and are showing trends to

encourage the food processing industry.

The fruit can be then cultivated in India in the regions of Himachal

Pradesh, Uttranchal Pradesh, Sikkim, Arunanchal Pradesh, Meghalaya,

Jammu and Kashmir and Nilgiri Hill, to cut down the cost of imports of

the fruit.

Threat:

Our competitors are deep pocketed and they could harm us by getting

aggressive in their promotional activities.

The competitors have strong brand images in the market because of their

other businesses and their presence in the market from an early stage.

Indian market has characteristic of serving a wide variety people which is

a challenge for all the marketers.

Others can adopt the flavour and the value of a unique flavour could be

neutralized soon.

Conclusion:

India is a tropical country and has accorded a favorable reception to thirst

quenchers such as fruit juices and aerated drinks. Ready to serve kiwi juice

is a beverage prepared from clarified kiwi juice. When chilled the RTS

beverage makes for a nutritious and refreshing drink. The nutritive value of

real fruit beverages is far greater than that of synthetic products, which are

being bottled and sold in large quantities throughout the country. If real fruit

juices could be substituted for these synthetic preparations, it would be a

boon to the consumer as well as the fruit grower.

India is a market of diversity – diverse with regards to incomes, price points

of products, culture and preferences and a marketer has to get use to these

diverse characteristics of the market.

Drinking juice is not a part of our culture. We drink water with our meals

but in the West one starts the day with breakfast and a glass of juice. Juice is

to a great extent considered as a luxury not a necessity in our society, surely

but slowly things are changing mainly in the urban and semi urban areas,

where the population is getting more and more health conscious and are

realizing the important nutrient values of fruit and are making them a part of

their daily diet.

The companies in this Rs. 100 crore industry will have to organize various

promotional activities from time to time mainly to increase sampling and to

educate the consumers about packaged fruit juice that it is as pure and

nutritious as fresh juice which is perceived as fresh as it is extracted in their

presence i.e. actual or assumed.

There are two main brands in this segment of non- carbonated drink

markets; they are ‘Real’ from Dabur and ‘Tropicana’ from PepsiCo. These

two players command around 80% market share in the organised sector.

We can observe this industry growing and new players entering the market.

In recent times we have seen the entries of some international brands, like

Berri [Australia], Ballantyne [Australia], and Tipco [Thailand], with the

intention to strengthen their hold in India and to grow with the market.

Suggestion

Supply distribution should improve in the area.

The company should work in their companies regarding to the cooler

and stabilizer.

Company should give proper schemes to the outlet.

The Refrigerator purity should have the priority.

Overall service should be improved for getting more sale and to be the

market leader.

The sales executives should try to avoid making false commitments

releasing short term goals.

Number of hording should be increased.

Florescent board displaying location and their distances on road

should be used having written on them.

Recommendation

This study gives a clear idea regarding consumer behavour while purchasing.

The strategy for the products can be changed by comparing the different factors

that has obtained from the study. Real has obtained the highest market share by

keeping in consideration the parameters like consumer feedback, packaging,

delivery mode, quantity and availability. The other brands have less market share

because they don’t have the strategy like Real to capture the market. Tropicana

is very near in every aspect to real and by changing the strategy like availability

and promotional activities it can cross the market share of Real very easily. The

price of Tropicana is affordable and has more number of customers whose

profession is student and falls between the age group 20-30.so, Tropicana can

do some promotional activities where they can capture other age group so that

their market share will increase. The other three brands Leh-Berry, Jumpin and

N-joi has less market share because of the quality and the type of packaging

they made for sale. The packaging of real is satisfactory. So, they can change

the packaging style more advance tetra pack models so that they can have huge

market share. It is also observed that flavour has great role for attracting

consumers. The flavour of some fruit juices are artificial which really doesn’t

attract customers during their second or third time purchase so without adding

artificial flavours natural flavour will work more strongly for attracting consumers.

To allocate the target consumers is the important work for the producers so that

they can match their product nature withy the preferences of the consumer who

are more willing to buy fruit juices. Now day’s consumers are more attracted

towards the modes of delivery so the modes of delivery can be changed by

alternate modes of delivery like home delivery and delivery by automatic

machines so that they can get fresh juices which change the psychology of

customers a lot as analyzed from this study and questionnaire. As the price of

Leh Berry, N-Joi and Jumpin is affordable it attracts the all income level of

consumers, but the real has the price which does not attract all level of

consumers so alternatively to get more share he has to reduce the profit margin

with less margin. The number of consumers fall in the middle class level so it is

very nessery retain those level of consumers who have dense population in

India. The urban areas mostly keen to adapt those sophisticated products due to

the social perceptions.socillly it can be marketed by considering the social

activities like festival. The wrong notion among the people is that fruit juices are

only good for athletes but that can be changed by campaigns. So before

lunching a new fruit juice brand in market the parameters which have taken into

consideration must be utilized for better consumer attraction.