Project Report

On

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 Flavours

1. 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 Orange, Apple

Re Orange, Apple

Xs Orange, Apple
5. 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 NERAMAC Pineapple

Mkt. Ltd.
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 Vadilal Mango, Pineapple, Orange
Ltd.
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 NOGA Pineapple Agro.

Inds. Development
Corp. Ltd.

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:

Company’s Manufacturing Facilities

Franchises Stockist Agent

Distributor

Retailer

End User

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
 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.