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GALAXY International Interdisciplinary Research Journal_______________________ ISSN 2347-6915 GIIRJ, Vol.2 (3), MARCH (2014)
35
PRODUCT POSITIONING AND OPPORTUNITY ANALYSIS FOR A
NEW PRODUCT LINE OF CARBONATED FRUIT JUICES FOR
PEPSICO IN INDIA
DR. RITESH K. PATEL
ASSISTANT PROFESSOR,
POST GRADUATE RESEARCH CENTRE FOR GOVERNANCE SYSTEMS (CGS), GUJARAT TECHNOLOGICAL UNIVERSITY (GTU), AHMEDABAD,
GUJARAT, INDIA.
ABSTRACT
The paper was focused on the launch of carbonated fruit juices in India and was broken down
into two decision problems: Is there an opportunity for a new product line of carbonated fruit
juices in India and what should be the positioning of such a product line? In order to do this,
we conducted secondary research, In-depth interviews and expert interviews at the
exploratory stage. For a descriptive analysis, we conducted quantitative survey.
On the basis of results found during analysis, we suggest that there is an ample opportunity to
launch a product in the carbonated fruit juice segment in India due to rapidly growing
segment and an increased awareness towards health among urban higher income consumers.
PepsiCo should target this segment in the introductory stage. The carbonated fruit juices lay
at the intersection of carbonated drinks and fruit juice category and the positioning of the
product is critical to determine future opportunity and competition. Key attributes associated
with carbonated drinks segment are Freshness, thirst quenching and brand and key features
associated with fruit juices are taste, health, and value for money and brand. Depending on
the key attributes identified from exploratory survey and by detailed quantitative analysis, we
suggest PepsiCo to launch its product with positioning ―Every day for Health with
freshness, no added preservative or color. Given that there is a clear preference for the 200ml
pack and the pert bottle, Pepsi Co should launch these during introduction. Given the high
preference of Orange flavor among both men and women, Pepsi Co should start with this,
and then expand to apple and mango. The pricing should be in the Rs 13-18 range. We can
afford to bias towards the higher end given that we are targeting urban higher income group.
Conclusions are made based on exploratory research, in-depth interviews and focus group
discussion findings, which may not be accurate as these tools have certain limitations. Some
important factors could have been missed by the researcher that might change the
interpretation of analysis. The major part of the sample population consisted of population
below 25 years of age, male and higher income segment. Thus, the survey results could have
a bias towards these characteristics of people. There could also be some limitations due to
methods used.
KEY WORDS: Fruit Juice Market in India, Carbonated Fruit Juices, Perceptual Mapping of
Fruit Juice Brands, Market Opportunity Analysis, etc.
GALAXY International Interdisciplinary Research Journal_______________________ ISSN 2347-6915 GIIRJ, Vol.2 (3), MARCH (2014)
36
Introduction
The fruit/vegetables juice market in India grew by 26% in 2011 to reach a total of 54 billion
INR. It is further broken down to 100% juice, juice drinks (up to 24% juice), fruit-flavored
drinks (no juice content) and nectars (25-99% juice). Fruit/vegetable juice total constant
value sales are expected to rise at a CAGR of 19% over the next 5 years. Category is
dominated by juice drinks, which accounted for a 78% total volume share in 2011. The fruit-
based carbonated drink segment has a market size of Rs 2 billion at present with products like
Parle Agro's Appy Fizz, Pepsi's Nimbooz and Coca-Cola's Minute Maid Nimbu Fresh having
a strong presence. Detailed category quantitative data is attached in the appendix. Coca-cola
India Pvt. Limited is the market leader with 28.2% market share by value followed by Parle
Agro (23.8%) and PepsiCo (21%). Among brands frooti and maaza together enjoy around
45% market share but they have shown a declining trend given the entry of healthy fruit
juices and other differentiated products. Real fruit juice and Tropicana capture the next 27%
of the market and it has been more or less stable in past 5 years. The category is forecasted to
grow at CAGR of 20% over next 5 years by value and 22% by volume.
Industry Trends
With the growing health and wellness trend in consumers the focus is shifting from
soft drinks to healthy fruit drinks. Consumers in urban areas are shifting to
vegetable/fruit juices
The total value growth of 26% was underpinned by the strong growth of nectars and
100% juice in the wake of rising health awareness.
Companies have started to focus marketing efforts to increase health awareness to
promote fruit juices
Single-flavoured juice products continue to dominate sales but manufacturers are
introducing mixed flavours to differentiate their product offerings. Straying beyond
the mainstay flavours, new options such as cranberry, lychee and pomegranate are
becoming increasingly popular.
100% juice registered the fastest growth in total volume terms, with a 30% increase in
2011. The product ís pure and natural image played well with the health trend.
Manufacturers are introducing products with different value propositions, such as
vitamin-, nutrient- or fiber-enriched variants.
Products in the juice drinks category are popular in India as they are priced at a
similar level to carbonates, thus consumers are shifting from carbonates to perceived
healthier options without having to increase their expenditure substantially.
Modern retail outlets though constitutes only 19% volume sales in 2011
The on-trade channel accounted for 14% of total volume sales in 2011, having grown
by 20% since 2010. Within the on-trade channel, fruit/vegetable juice is mainly
consumed in bars and restaurants, including as a mixer.
GALAXY International Interdisciplinary Research Journal_______________________ ISSN 2347-6915 GIIRJ, Vol.2 (3), MARCH (2014)
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Unpackaged fruit/vegetable juice is very popular in India, considered to be fresh and
natural. They are easily available and are cheaper compared to packaged drinks. But
quality and hygiene might create doubts in minds of consumers.
Orange was the leading flavor in volume terms for both 100% juice and nectars in
2011. However, juice drinks was dominated by mango, which accounted for 85% of
volume sales. Mixed fruit is emerging as a popular flavor in 100% juice, rising to a
volume share of 19% in 2011.
Competitive Analysis
With the launch of its brand Minute Maid in the 100% juice category in 2011, the
share of Coca Cola is expected to grow in 2013. The unique selling point of this
product is that it contains no added preservatives or added colors.
Regional players have also started entering the category to tap the growing potential.
Tunip Agro Pvt Ltd, Balan Natural Foods, Allied Foodstuff & Beverages Ltd and
Surya Food & Agro Ltd are some of these.
Dabur Ltd also launched Réal Activ Fiber+ juices which the company claims aids
Dabur India rebranded its products by shifting its positioning from taste to health, as
well as through changes to packaging. The digestive system and weight management.
Brick liquid carton packaging is the most popular for the category in India. Products
from one litre down to 200ml are offered to cater to at-home consumption as well as
consumption on the go.
Table 1 Off-trade Sales of Fruit/Vegetable Juice by Category: % Volume Growth 2006-
11
% volume growth 2010/11 2006-11 CAGR 2006/11 Total
100% Juice 30.8 24.6 200.7
- Frozen 100% Juice - - -
- Not from Concentrate 100% Juice - - -
- Reconstituted 100% Juice 30.8 24.6 200.7
Juice Drinks (up to 24% Juice) 23.8 22.1 171.6
- Asian Juice Drinks - - -
- Frozen Juice Drinks - - -
- Juice Drinks Excluding Asian 23.8 22.1 171.6
Fruit-Flavoured Drinks (No Juice Content) - - -
Nectars (25-99% Juice) 26.8 23.2 183.6
- Frozen Nectars - - -
- Unfrozen Nectars 26.8 23.2 183.6
Table 2 Leading Flavours for 100% Juice: % Volume Breakdown 2006-2011
% retail volume 2006 2007 2008 2009 2010 2011
Apple 19 18.5 18.5 18 17.5 17
Mango 4 4.5 5 5.5 5.5 5.5
Mixed fruits 15.5 15.5 16.5 16.5 18 18.5
Orange 42 42 41 41 40 40
Total 100 100 100 100 100 100
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Table 3 Leading Flavours for Juice Drinks(up to 24% Juice): % Volume 2006-11
% retail volume 2006 2007 2008 2009 2010 2011
Apple 4 3 3 2.5 1.5 1
Lemon 0.5 0.5 1 6 9.9 7
Mango 92 91 88 85 83.5 85
Orange 1 2.5 5.5 4.7 4.1 4.5
Total 100 100 100 100 100 100
Other flavours 2.5 3 2.5 1.8 1 2.5
Table 4 Leading Flavors for Nectars (25-99% Juice): % Volume Breakdown 2006-2011
% retail volume 2006 2007 2008 2009 2010 2011
Apple 30 30 29 28 28 28
Lychee 1 1 1 2 3 4
Mango 7 9 10 10 10 10
Mixed fruits 1 1 1 1 2 3
Orange 40 40 39 38 38 38
Total 100 100 100 100 100 100
Table 5 Company Shares of Fruit/Vegetable Juice by Off-trade Volume 2007-2011
% off-trade volume 2007 2008 2009 2010 2011
Coca-Cola India Pvt Ltd 31.7 32.4 32.7 35.3 32.3
Parle Agro Pvt Ltd 34.8 33.5 30.5 29.5 27.9
PepsiCo India Holdings Pvt Ltd 15.1 15.3 18.1 19.2 18.1
Dabur India Ltd 10.8 11 9.7 9.1 9.3
Tunip Agro Pvt Ltd - - 0.7 0.7 0.8
Godrej Hershey Foods & Beverages Ltd 0.3 0.3 0.3 0.3 0.3
Ceres Fruit Juices (Pty) Ltd - 0.1 0.1 0.1 0.1
Tata Global Beverages Ltd - - 0.3 0.7 0.1
Godrej Foods Ltd - - - - -
Dabur Foods Ltd - - - - -
Others 7.3 7.3 7.7 5 11.2
Total 100 100 100 100 100
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Table 6 Brand Shares of Fruit/Vegetable Juice by Off-trade Volume 2008-2011
% off-trade volume Company 2008 2009 2010 2011
Maaza Coca-Cola India Pvt Ltd 28.4 29.2 29.5 28.2
Frooti Parle Agro Pvt Ltd 29.2 26.5 25.7 24.8
Réal Dabur India Ltd 10.1 9.7 9.1 9.3
Slice PepsiCo India Holdings Pvt Ltd 7.6 7.8 7.9 8.3
Tropicana PepsiCo India Holdings Pvt Ltd 7.7 7.6 7.5 7.8
Minute Maid Coca-Cola India Pvt Ltd 4 3.5 5.8 4.1
Appy Parle Agro Pvt Ltd 4.3 3.9 3.8 3.2
7-Up PepsiCo India Holdings Pvt Ltd - 2.7 3.8 1.9
Onjus Tunip Agro Pvt Ltd - 0.7 0.7 0.8
XS Godrej Hershey Foods & Beverages Ltd 0.3 0.3 0.3 0.3
Ceres Ceres Fruit Juices (Pty) Ltd 0.1 0.1 0.1 0.1
T!ON Tata Global Beverages Ltd - 0.3 0.7 0.1
Real Twist Dabur India Ltd 0.8 - - -
Coolers Dabur India Ltd 0.2 - - -
Coolers Dabur Foods Ltd - - - -
Réal Dabur Foods Ltd - - - -
Real Twist Dabur Foods Ltd - - - -
XS Godrej Foods Ltd - - - -
Others Others 7.3 7.7 5 11.2
Total Total 100 100 100 100
DEFINING THE RESEARCH PROBLEM
Problem Definition
Based on the scope of the research, two decision problems were identified
1. Is there an opportunity for a new product line of carbonated fruit juices in India?
2. What should be the positioning of such a product line?
Based on literature review and information obtained from secondary sources, four research
problems were identified
1. To assess opportunity for a new product line of carbonated fruit juices in India?
2. To find out the important attributes/benefits and determine possible positioning of such a
product
3. To find out the best product concepts by consumer need and acceptance
4. To find out the best packaging and SKUs for such a product
5. To find out the possible price point
The first research problem would help us in assessing the scope of the opportunity. The latter
research problems would help us to identify the ideal product features, target market and
positioning of the product. Questionnaires were prepared which would aid us in obtaining the
information necessary to answer these questions in addition to secondary data available. The
entire research matrix for this study is summarized below.
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Research Design
A large amount of information and analysis would be needed before PepsiCo can reach
decision of launching a carbonated fruit juices category. The ultimate decision would depend
on the consumer preferences, their expectations from different types of beverages and the
impact of such a launch. If, such a category is launched, the required positioning is to be
decided. To understand the current industry, information on consumer buying behavior would
need to be collected. For our purpose, the factors like energizing, fizzy, tasty, refreshing,
thirst quencher, becoming popular etc. would be considered and their relative importance for
the consumers would be evaluated. Once the consumer preferences are known, their
expectations from such a product need to be established. Some of the benefits like freshness,
energizing, healthy, tasty etc. would be a part of the questionnaire. Also, the gap between the
consumer needs and what is offered currently in the market would be evaluated. This would
help decide the positioning for the product. It could be a low end product competing with the
fruit juices category or it could be a high end product competing with energy drinks. For
launching the product we will also need information for possible packaging and SKU sizes.
This would come from the consumer buying behavior. Information on buying frequency
preferred SKU sizes and attractive packaging for the desired positioning options would be
collected.
Stage 1: Secondary Research First of all various secondary data sources such as literature surveys and articles were
identified and studied in order to understand the current industry status: various branded and
unbranded products in market, variants available, product positioning, price, target audience
and consumer segments, distribution channels and consumer perception of the brand/product.
A list of various attributes is attached in appendix 1.
Stage 2: Exploratory Research
Qualitative research was conducted to understand the underlying reasons and motivations of
people to consume the currently available cold beverages. A small number of representative
cases we chosen and an unstructured and non-statistical research was conducted to develop
an initial understanding. Within the quantitative research techniques, the direct approach was
used. The purpose of the survey i.e. the intention to launch a carbonated fruit juice by Pepsi
was disclosed.
In-depth interviews were used among the direct approaches. Given the wide variety of
drinks available, tendency of people to get biased by group response, complicated
consumption behaviour, importance of experience and the heterogeneity of choices of the
target segment, 15 in-depth interviews were conducted to understand the underlying
motivations, beliefs, attitudes and feeling for positioning, pricing etc. The outcome would
also help us in understanding the consumer perception of the product, scope for a new
carbonated fruit juice, possible pricing and packing.
Expert Interview was also used to further understand the industry characteristics that helped
us understand and determine selling side features related to distribution etch in detail. The
transcript for the interview is attached in appendix 4. The sole idea behind conducting these
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interviews was to understand the buying behavior of consumers and frame our Questionnaire
based on the results obtained.
Stage 3: Descriptive Research
A quantitative descriptive research was conducted through a survey. A structured
questionnaire targeted at current consumers of carbonated drinks and fruit juices was used to
obtain customer preferences and ideal positioning.
Sampling method On account of time and resource constraints imposed by the course, we were not be able to
incorporate a probabilistic sampling method. We used a non-probabilistic method of
sampling called quota sampling targeting equitable distribution in above three market
segments.
Sampling Plan
Target Population: The survey was floated through the internet on Qualtrics.com and sent to
friends and contacts through social networking channels. The targeted number was around
150, and a number of 120 were reached. The unit of analysis was individual. Strata: Based
on secondary research and results from the exploratory and research, we identified the ideal
candidates to answer the problems were end-level consumers. We want to test the
acceptability of our product among the urban population and did a quota sampling based on
age, gender and salary.
Data transcribing and cleaning: Data was transferred from Qualtrics survey software
directly in the form of .csv file for analysis on minitab. Cleaning the data was done through
consistency checks and manual removal of imperfect responses.
Data Preparation
After collecting all responses and eliminating spurious ones, we prepared the codebook
containing an exhaustive list of the variables corresponding to the questions and assigned
codes according to the scale type. The codebook consisted of a total of 24 questions and 89
variables. A codebook summary is shown in Exhibit 1.
Measures and Variables
Cronbach's alpha was used as a measure of internal consistency for the variables measured on
Likert Scale to determine if the scale is reliable. The research had three sets of questions to
determine the value of two dependent variables i.e. overall satisfaction and purchase
intention. Each question was a 5-point Likert item from "strongly disagree" to "strongly
agree". In order to understand whether the questions in the questionnaire all reliably measure
the same latent variable i.e. a Likert scale could be constructed; a Cronbach's alpha was run
on the data collected. It was used for the three sets of variables below:
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Independent Variables
Code Dependent Variables Code Cronbach’s
alpha
Features associated with
carbonated drink recently
consumed
4 to 8 Overall satisfaction and
repurchase likelihood of
carbonated drinks
9, 10 0.72
Features associated with fruit
juice recently consumed
15 to
20
Overall satisfaction and
repurchase likelihood of fruit
juice
21,22 0.81
Features associated with
carbonated fruit juice
recently consumed
27 to
33
Overall satisfaction of
carbonated fruit juice
34 0.77
Interpretation of the Cronbach’s alpha can be as below:
Cronbach's alpha Internal consistency
α ≥ 0.9 Excellent
0.8 ≤ α < 0.9 Good
0.7 ≤ α < 0.8 Acceptable
0.6 ≤ α < 0.7 Questionable
0.5 ≤ α < 0.6 Poor
α < 0.5 Unacceptable
Based on these we conclude the following:
The data for determining the overall satisfaction and repurchase of carbonated drinks
is on the borderline of the acceptable limit.
The data for determining the overall satisfaction and repurchase of fruit juices is well
in good limit and hence the scale for these variables is reliable.
The data for determining the overall satisfaction carbonated fruit juices is in the
acceptable limit.
Data Interpretation and Use
Identifying priority attributes in customer purchase of carbonated fruit drinks From the qualitative results, we obtained a list of attributes expected by consumers in
carbonated drinks and fruit juices. After determining the relative importance of these features
using regression, the perceived performance of carbonated fruit juices was tested on these
features to determine what features of each of these are associated with carbonated fruit
juices. Questions 3, 4, 5, 8, 9, 10, 13 and 14 provided this data. Determining the competitive
positioning of Appy on the critical attributes identified After determining the features
associated with carbonated drinks, fruit juices and Appy, we can determine the positioning of
Appy which is our current competition in this segment. Assess the customer reaction to the
product concepts After obtaining the important features for the carbonated drinks and fruit
juices, a perceptual map was constructed to determine the performance the three different
product concepts to obtain an overall rating. This rating with believability was used to do a
regression on buying intention to determine the best product concept. Identify possible
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packaging options, SKU size and price points Cross tabulation was used to determine the
possible packaging, SKU size and pricing options.
Product Concepts:
P1. Fruit juice with fizz
P2. Health juice with taste and freshness
P3. Daily consumption health drink
RESULTS OF QUANTITATIVE SURVEY
Q3. Association of benefits with recently consumed carbonated drink: On the basis of survey
responses it comes out that FRESHNESS, THIRST QUENCHING and TASTE are benefits
that consumers derive from the carbonated drinks with TASTE being the most popular with
88% consumers associating. Value for money is the least popular benefit among the
consumers with only 21% of consumers associating with it.
Figure 1Perceived strength of features with carbonated drinks
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Q6. Most of the consumption of carbonated drinks happens in restaurants (69%) or on the go
(58%). Only 26% of respondents chose home as place of consumption.
Figure 2 Place of consumption of carbonated drinks
A cross tabulation analysis was done understand the relation between place of consumption
and frequency. The analysis shows that most of the people consume carbonated drinks for 2
to 3 times a week with maximum consumption occurring at the restaurants/bars or on-the go.
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Q8. Association of features with recently consumed carbonated drink: More than 75% of
respondents associated taste/flavor and health with consumption of fruit juices. ENERGY and
QUALITY as benefit closely followed with 65% respondents associating with it. Value for
money and BRAND were the least associated with.
Figure 3 Perceived strength of features with fruit juices
Q11. A lot of consumption for fruit juices happens in home or at restaurants
Figure 4 Place of consumption of fruit juices
A cross tabulation analysis was done understand the relation between place of consumption
and frequency. The analysis shows that most of the people consume fruit juices for 2 to 3
times a week with maximum consumption occurring at the restaurants/bars or home.
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Q13. VALUE for money, HEALTH, ENERGY and THIRST QUENCHING were the least
sought after by respondents in a carbonated fruit juice. FRESHNESS and TASTE were given
importance by around than 70% of respondents.
Figure 5 Perceived strength of features with carbonated fruit juices
Q 15. Orange was clearly the most popular flavor followed by Apple, Lemon and Mango.
Figure 6 Flavor Preferences
Cross Tabulation of flavor preference with gender reveals that orange juices leads the
consumption pattern for both male and female which shows that orange juice is perceived
with a higher value as compared to any other flavor. For male, apple and mango are next two
favorite flavors. However, female values lemon and mango equally
Table 7 Preference to flavor(s) of juice to the Gender
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Q18. Consumers prefer the 200ml pack over other SKU sizes.
Figure 7 Preference for SKU size
Q19. Consumers prefer the pert bottle by a huge margin to other packing. Beyond the pert
bottle, they are indifferent to packaging.
Figure 8 Preference for packaging
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Q20. 43% of the consumers expect the product to be priced in the Rs13-18 range. The
positioning and marketing will determine the premium Pepsi can charge.
Figure 9 Preference for pricing point
DATA ANALYSIS
Step 1. Identifying priority attributes in customer purchase of carbonated drinks
Correlation and Regression analysis as shown below helped us shortlist freshness, thirst
quenching properties and brand as key properties.
Correlation Analysis: The correlation values are between -0.7 and 0.7 and hence there is
weak correlation between the independent variables. Because the correlations are weak, we
don’t need to do a factor analysis.
Correlation: Freshness, Thirst, Value for Money, Taste, Brand
Regression Analysis: We used a 5% significance level for our analysis and hence dropped
taste and value for money from our final list. R-square is low indicating that there are other
factors also which determine the purchase behavior of carbonated drinks. The Durbin-Watson
stats are within the upper and lower bound.
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The regression equation is Experience = 1.38 + 0.310 Freshness + 0.196 Thirst + 0.147 Brand
Table 8 Regression Model
Table 9 Analysis of Variance
Step 2: Identifying priority attributes in customer purchase of fruit juices
Correlation and Regression analysis as shown below helped us shortlist taste and flavor,
health, value for money and brand as key properties.
Correlation Analysis: The correlation values are between -0.7 and 0.7 and hence there is
moderate correlation between the independent variables. Because the correlations are not
very high, we don’t need to do a factor analysis.
Correlation: Taste & Flavor, Healthy, Energy, Quality & Value for Money
Regression Analysis: We used a 5% significance level for our analysis and hence dropped
energy and quality from our final list. R-square is low indicating that there are other factors
also which determine the purchase behavior of carbonated drinks. The Durbin-Watson stats
are within the upper and lower bound.
The regression equation is Experience = 0.637 + 0.289 Taste and Flavour + 0.246 Healthy +
0.172 Value for Money + 0.142 Brand
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Table 10 Regression Model
Table 11 Analysis of Variance
Step 3: Identifying priority attributes in customer purchase in carbonated fruit juices
Correlation and Regression analysis as shown below helped us shortlist freshness, taste and
health as key properties. Correlation Analysis: The correlation values are between -0.7 and
0.7 and hence there is moderate correlation between the independent variables. Because the
correlations are not very high, we don’t need to do a factor analysis.
Regression Analysis:
We used a 5% significance level for our analysis and hence dropped energy and quality for
money from our final list. R-square is low indicating that there are other factors also which
determine the purchase behavior of carbonated drinks. The Durbin-Watson stats are within
the upper and lower bound.
The regression equation is Repurchase = 2.06 + 0.085 Freshness/Fizz + 0.248 Taste - 0.039
Health
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Table 12 Regression Model
Determining the competitive positioning of Appy on the critical attributes identified
Analysis above can be summarized as follows:
Carbonated Fruit
Juice
Carbonated Drinks Fruit Juice
Freshness Freshness Taste
Taste Thirst-quenching Health
Health Brand Value for money
Brand
The regression coefficient for health is negative for Appy. As health is a major concern for
carbonated drinks while it is a perceived benefit of fruit juices, Appy is clearly associated
closer with carbonated drinks in this respect. The freshness feature is also associated with
carbonated drinks while taste is a dominant feature for fruit juices. Thus while on overall
positioning Appy is grouped with carbonated drinks, it has positive taste attribute associated
with fruit juices.
Assess the customer reaction to the product concepts
Product Concepts:
P1. Fruit juice with fizz
P2. Health juice with taste and freshness
P3. Daily consumption health drink
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Method 1: Simple Ranking Method
Respondents were asked to associate the attributes to one of the three product concepts
designed. From our previous analysis on attributes in case of carbonated drinks and fruits
juices we had arrived at freshness, thirst quenching, taste, health benefits and value for
money as important factors. Table below shows the percentage of respondents picking a
product concept for a particular attribute. Table below shows the ranking of product concepts
on various attributes. Since the gaps are wide for all the possible combinations, different
ranks were possible to all the concepts in all cases.
P2 scores higher rank (1-2) in all the six attributes and for P2 taste and health benefits are the
major attributes associated by respondents. Thus, from this analysis our choice of product
concept is P2 which is a healthy drink with favorite tastes. This is different from the
observation we had for the existing carbonated fruit drink (Appy), wherein health had
negative correlation with the choice of consuming the drink. Hence, our positioning would be
unique in the market and it would be communicated in that way.
P1 P2 P3
Freshness 48% 35% 27%
Thirst Quenching 23% 48% 38%
Refreshing 25% 56% 44%
Taste/flavor 29% 65% 15%
Health Benefits 6% 75% 23%
P1 P2 P3
Freshness 1 2 3
Thirst Quenching 3 1 2
Refreshing 3 1 2
Taste/flavor 2 1 3
Health Benefits 3 1 2
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Method 2: Factor Analysis and Perceptual Map
Factor analysis was done using overall Factor rating deduction from the data:
Variable Factor1 Factor2
Freshness 0.345 0.366
Thirst Quenching 0.292 0.688
Taste/Flavor 0.360 -0.369
Health Benefits 0.323 -0.602
Overall factor reductions
Factor 1
Factor 2
P1
0.36
0.19
P2
0.74
-0.23
P3
0.33
0.17
0%
10%
20%
30%
40%
50%
60%
70%
80%
P1
P2
P3
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Perceptual Map Plot
P1. Fruit juice with fizz
P2. Health juice with taste and freshness
P3. Daily consumption health drink
Product Concept Uniqueness
Freshness
Thirst Quenching
Taste/Flavor
Health Beneftis
P1
P2
P3
-0.8
-0.6
-0.4
-0.2
0
0.2
0.4
0.6
0.8
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8
GALAXY International Interdisciplinary Research Journal_______________________ ISSN 2347-6915 GIIRJ, Vol.2 (3), MARCH (2014)
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Purchase Intent
The product concepts rated on purchase intent also exposed that product concept 2 was mpst
acceptable
Cross Tabulation Analysis for packaging options, SKU size and price points
To determine dependence and possible correlations, cross tabulation analysis was done
between packaging, SKU size and price points.
Age and Packaging Pert Bottle is the most preferred package across all the age groups.
Metal Pert Bottle Glass Indifferent
Below 25 yrs 13 32 11 12
25 - 45 yrs 4 11 0 7
46-60 yrs 1 1 1 1
Above 60 yrs 0 0 0 0
Annual Income vs. Price willing to pay for 200 ml Majority of the people across the entire income group are willing to pay Rs. 13-18 for 200 ml
bottle.
Rs 10 to 12 Rs 13 to 18 Rs 19 to 22 >Rs 22
<3,00,000 3 6 3 0
3,00,000-10,00,000 19 18 7 0
>10,00,000 15 19 6 0
GALAXY International Interdisciplinary Research Journal_______________________ ISSN 2347-6915 GIIRJ, Vol.2 (3), MARCH (2014)
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RECOMMENDATIONS
1. Secondary and exploratory research exposed that there is opportunity in India to
launch a product in the fruit juice segment due the rapidly growing segment and an
increased awareness towards health among urban higher income consumers. PepsiCo
should target this segment in the introductory stage.
2. The carbonated fruit juices lie at the intersection of carbonated drinks and fruit juice
category and the positioning of the product is critical to determine future opportunity
and competition.
3. Key attributes associated with carbonated drinks segment are Freshness, thirst
quenching and brand and key features associated with fruit juices are taste, health, and
value for money and brand.
4. Depending on the key attributes identified from exploratory survey and by detailed
quantitative analysis, we suggest the PepsiCo launch its product with positioning
―health juice with Health and freshness, no added preservative or color.
5. Given that there is a clear preference for the 200ml pack and the pert bottle, Pepsi Co
should launch these during introduction.
6. Given the high preference of Orange flavor among both men and women, Pepsi Co
should start with this, and then expand to apple and mango.
7. The pricing should be in the Rs 13-18 range. We can afford to bias towards the higher
end given that we are targeting urban higher income group.
LIMITATIONS
1. As conducted as part of exploratory research, in-depth interviews and focus group
discussion findings may not be accurate as these tools have limitations. Some
important factors could have been missed that might have changed our analysis.
2. The quantitative survey had 120 responses, out of which only 96 responses were
genuine. Out of these 87.5% had consumed carbonated drinks and 80% had consumed
fruit juices which made the sample size further smaller for analysis. Extrapolation of
inferences from these responses may not be true in some cases.
3. The sample population consisted of a huge fraction of population below 25 years of
age, male and higher income segment. Thus, the survey results could have a bias
towards these characteristics of people.
4. Data analysis methods such as Correlation, regression analysis and factor analysis
have their own limitations and assumptions. While we tried our best to ensure limited
effect on the inferences, it may have missed a few factors.
5. Quantitative questionnaire was designed after several iterations to make sure all the
factors were included. Yet, all the necessary aspects may not be covered thoroughly in
the questionnaire due to practical limitations.
6. Due to limitations in getting a long questionnaire filled, we restricted it to 24
questions. However, this could also have made the respondents impatient and resulted
in random/inaccurate responses. While 120 responses were considered to ensure
limited role of outliers, the responses could still be misleading.
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GALAXY International Interdisciplinary Research Journal_______________________ ISSN 2347-6915 GIIRJ, Vol.2 (3), MARCH (2014)
57
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GALAXY International Interdisciplinary Research Journal_______________________ ISSN 2347-6915 GIIRJ, Vol.2 (3), MARCH (2014)
58
Exhibit 1
Variable
No
Description Q
No
Scale
Type
1 to 2 Whether any of carbonated drinks or fruit juices are
consumed
1 Nominal
3 Weekly frequency of consumption of carbonated drinks 2 Interval
4 to 8 Features associated with carbonated drinks recently
consumed
3 Interval
9 Overall satisfaction with the carbonated drink 4 Interval
10 Likelihood of repurchase of the carbonated drink 5 Interval
11 to 13 Place of consumption of the carbonated drink 6 Nominal
14 Weekly frequency of consumption of fruit juice 7 Interval
15 to 20 Features associated with fruit juice recently consumed 8 Interval
21 Overall satisfaction with the fruit juice 9 Interval
22 Likelihood of repurchase of the fruit juice 10 Interval
23 to 25 Place of consumption of the fruit juice 11 Nominal
26 Trial of carbonated fruit juice 12 Nominal
27 to 33 Features associated with carbonated fruit juice recently
consumed
13 Interval
34 Overall satisfaction with the carbonated fruit drink 14 Interval
35 to 42 Whether the consumer likes a flavor 15 Nominal
43 to 64 Whether the identified attributes are associated with the
three product concepts
16 Nominal
65 to 67 Believability of product concepts 17 Interval
68 to 70 Overall purchase intention of product concepts 18 Interval
71 to 74 Preferred SKU size for carbonated fruit juice 19 Nominal
75 to 78 Preferred packing for carbonated fruit juice 20 Nominal
79 Preferred price point 21 Interval
80 to 84 Age 22 Nominal
85 to 86 Gender 23 Nominal
87 to 89 Family Income 24 Nominal