MARKOV CHAIN OF BRAND SHARE ESTIMATION FOR MANGO DRINK

MARKOV CHAIN OF BRAND SHARE ESTIMATION FOR MANGO DRINKFROOTI, MAAZA & SLICE

Group-10

Project Summarya) Markov Chain of Brand Share estimation is strong techniques for forecasting long term market shares in oligopolistic markets.b) Markov chain also helps in understanding the loyalty levels by the changes in the market share of future c) The results of the solved equations help in understanding the futuristic situation and take corrective actions.d) Frooti has seen a market share dip in fiscal year 2012-2013 by 5%.Reason for choosing Mango Fruit DrinkThe category of healthy fruit juice drink been increasing steadily since the consumers have become more health conscious and are looking for healthy substitute for cold drinks. This has prompted many new companies to enter the market especially in the Mango Fruit Drink category. This Category has been dominated for decades by the Parle Agro Product Frooti but due to increasing competition from other mango drinks it becomes very necessary to analyse on the future scenario and market share of the Mango Drink so that corrective actions can be made.Objective To find how many consumers have shifted to which brand in a particular time span w.r.t 3 brands of Mango drinks - Frooti, Maaza & Slice. To Analyse forecast long-term market share for the brands To understand the market position of Frooti & provide recommendations.Research Methodology Sources of Data Primary Data:- Direct personal date collection with the help of a questionnaire were given to the respondents Secondary Data: - Company websites, PowerPoint presentations, Website Searches. Research Instrument: - Questionnaire Sampling Method: - Convenience Sampling Sample Size:- 80 ( Students) Statistical Tool Used:- Markov Chain of Brand Share Estimation

Market Share

Brand1st Period2nd Period3rd PeriodSteady State

MAAZA40%40%39.6%40%

Frooti39%41.8%42.6%42.5%

Slice21%18.2%17.8%17.5%

Findings:- Statistical Solution after applying Markov Chain

Maximum number of respondents rated MAAZA as their most preferred brand followed by Frooti & then Slice It was seen that out of 16 MAAZA consumers half of the consumers were ready to shift from MAAZA to Frooti for their next purchase whereas incase of Frooti respondents were more half of the respondents brand loyal. Maximum number of respondents consuming Frooti and want to switch would purchase MAAZA then Slice hence MAAZA is the biggest competitor of Frooti. Respondents consuming Slice were not brand loyal and would like to switch from MAAZA to Frooti hence in the analysis also the growing future market share of Frooti is quite evident.

Recommendation

Like MAAZA Frooti should also emphasize more on the different SKU the company provide rather than just concentrating on Frooti Tetra Pack Since these products are impulse purchase products Frooti should have an Efficient Planogram and POP (Point of Purchase) displays. Increase advertisement frequency so Frooti remains the top of mind recall drink Heavy sales promotions offers during festive season ( For e.g. small tetra pack free on a bottle of 1 ltr.) Promote it on various digital platforms

ConclusionFrooti has been facing tough competition from MAAZA but as per the analysis the company enjoys a growing market share since respondents consuming Slice and MAAZA are not satisfied with their drink and would like to switch providing a growth opportunity in market which is also very evident from the solution which shows steady increase in the market share of Frooti.