Marketing Management

A Project Report on

FP Agro Pvt Ltd

Group Members
Marshall D’Souza # 115
Maulik Mehta # 136
Nikhil Mehta # 137
Vishal Pansari # 149
Kamlesh Parmar # 150
Niket Raut # 161
 Agenda

Industry Analysis

Why this Product?

About the Company

Mission & Vision

Target Market

Competitive Analysis

SWOT Analysis

Marketing Mix (4 P’s)
 INDUSTRIAL ANALYSIS
 Branded fruit beverage market in India is estimated to be worth Rs. 1,200
crore (nectars, drinks and juices combined)
 Juices - over 85% pulp content
 Nectars - 20% to 85% pulp content
 Fruit Drink – Less than 20% pulp content

Segment Market Share

Juices 30%

Nectars 10%

Fruit Drink 60%

 INDUSTRIAL ANALYSIS
 The Fruit Drink market has grown at a 20% to 25% rate.
 Of this, more expensive juices segment has grown at rate of
40% this year. It accounted for only 15% of the fruit beverage 3
years back.
 In–home consumption of juices has gone up from 30%, three
years back to 80% today.
 Mango based drinks account for two thirds of fruit drinks
industry.
 More than 80 % of sales happen through the unorganized
route - juice centers, street corner shops and so on
 About FP AGRO PVT LTD
 FP Agro will produce fruit juice & fruit drinks.
 FP Agro is going to make unique position in terms of
corporate presence with its advanced technology and the
instrumentation required to manufacture a Juice that has
many different flavors, for utmost customer satisfaction.
 FP Agro will be an environment-friendly company dedicated
on sustainable development and corporate social
responsibility, as a service to society and preservation of
nature.
 FP Agro headquarter will be situated in Mumbai and it would
be having Satellite branches in major Metros.
 MISSION
“To be a leading producer of fruit juices based on
dedication to nature, corporate and process
hygiene, dynamic leadership and commitment
to our partners and stakeholders.”
 VISION
“To be India’s Premier Fruit Juice Company,
offering nutritious & superior quality tasting
drinks to its consumers. By 2016 we aim to
achieve 30% of Market Share, and while doing
it we would be the best in terms of consumer
value, customer service, employee talent, and
consistent and predictable growth.”
 Why this Product?
 India currently produces about 50 million tonnes of fruits, which is about
9% of the world’s production of fruits.
 Though India has a strong raw material base, it has been unable to tap the
potential for processing and value addition in perishables like fruits and
vegetables.
 Only about 2 percent of the fruits and vegetables in India are processed,
which is much lower when compared to countries like USA (65 %),
Philippines (78%) and China (23)%
 Why this Product?
Factors Driving Demand for Our Product
1) Changing age profile- A relatively larger share of young
population which has the ability to spend on processed foods
2) Increase in income- The middle and upper middle income
groups growing at a faster rate than in developed countries
resulting in higher spending on food
3) Social changes- Increasing number of working women
4) Life style factors- Increasing health consciousness and need
for convenience fruit drink
5) Availability of Organized Retail outlets- These provide the
much needed forward linkages
 TARGET MARKET
 Primary Market
– Kids – Fond of Fruit Juice (fond of mango, strawberry)
– Teens – More experimental
– Youth – Experimental and more buying power
– Working People
– Housewives
– Elderly people

 Secondary Market
– Travel Industry
– Airlines, Railways and Local Transport Systems
– Recreational
– Movie Theatres, Malls, Amusement Parks.
– School, Colleges
– Hotels, Restaurants, Bars etc.
 Market Segmentation
 Market segmentation is the process in marketing of
dividing a market into distinct subsets (segments) that
behave in the same way or have similar needs

Variables Used for Segmentation

1) Geographic variables
2) Demographic variables
3) Psychographic variables
4) Behavioral variables
 Market Segmentation Variables
Geographic
 By leveraging the benefits of liberalization and
integration of the markets of the world, FP will
seek to serve both domestic and international
customers.
 Metropolitan Cities, major cities/towns of the
states.
 Density of Area: Urban, Semi-urban, Rural.
 Climate: Tropical
Demographic
 Age – all age group
 Gender – Both Male and Female
 Family size - doesn’t matter
 Education - doesn’t matter
 Income – middle & hi end consumer
 Occupation – student, working and retired people
 nationality/race – doesn’t matter
 language - doesn’t matter

Psychographic Behavioral
Personality No  benefit sought
 product usage rate
Lifestyle Yes
 brand loyalty
Value Yes  profitability
Attitude Yes  income status
 Major Competitor Analysis

 Dabur's flagship brand Real fruit juice is a  Tropicana is a product of vast PEPSI
market leader in the packaged fruit juice family and has a market share of 25%
category.
 The company sources orange juice
 Real with a market share of 57 % offers to concentrates from Brazil.
its consumers the largest range of 9 juices
 They come in Tetrapaks of one litre and
that comprise orange, mango, pineapple,
PET bottles of 500 ml and one litre.
mixed fruit, grape, guava, tomato, litchi and
cranberry.  Pepsi also markets Gatorade an energy
drink for the sports personnel which is a
 Real Active orange carrot juice, India's first
sugar-free Diet Pepsi.
packaged fruit + vegetable juice.
 Pepsi, in association with Unilever have
 Spread over 11 acres and geared to process
launched Lipton iced tea
150 tonnes of fruit per day, it has the
capacity to produce 192 tonnes of
pulp/concentrate
 Major Competitor Analysis
 Frooti from Parle Agro is the largest
distributed fruit drink with 85% market
share (Tetra Pack)
 It reaches more than 10 lakh retail outlets
in up to class C towns
 Parle’s Agro’s APPY, in 1996 had a
market share of 5% in the fruit drink
segment
 In 2003 its new variant-APPY FIZZ was
launched which was a hit.
 Maaza was launched in 1976.
 In 1993, Maaza was acquired by coca cola
India.
 Over the years, Maaza has become
synonymous with mango.
 The drink became a hit with successful
advertisement campaigns like "Taaza
mango, maaza mango,' and 'Botal mein
aam, maaza hain naam.
 It is available in 200 ml , 250 ml , 125 ml
Tetrapak and 200 ml Tetrapak.
Strengths & Weakness of Competitors
Name Strengths Weakness
CavinKare Pvt Ltd Acquired Maa Fruits Pvt Ltd Entering in a new
Distribution network segment

Coca Cola India Global leader in beverages New Entry

Growing Fast
PepsiCo Global Brand in beverage Less Product Line
Parle Agro Market share Less Product Line
Dabur Market leader Less cost effective
Godrej Beverages Innovation New entry
Ladakh Foods Nutrients Taste
Mother dairy Cost Effective New Entry
 SWOT ANALYSIS
STRENGTH WEAKNESS
• Adequate availability of raw • Seasonal availability of fruits
INTERNAL

materials • Brand acknowledgement

• Price, a competitive advantage • Late entry into the market.
• Natural Product. • Dependence on HP fruits.
• Dependence on Monsoon

OPPORTUNITY THREATS
• Participation with a growing • Cut throat competition
EXTERNAL

industry. • Unstable government policies

• Competitive advantage over • Rising Global Warming
carbonated soft drinks.
• Success of incredible India
campaign
• Possible deal with Mumbai Criket
Association (MCA).
Marketing Mix
 Product
 Fresh Punch is a 100 percent fruit juice which
will be produced and marketed by the FP Agro
Industries Ltd.
 BRAND NAME: FRUIT PUNCH
 Our Product Variants
Mixed Fruit Orange Crispy Apple Mango
Bytez Mania
 Product Life Cycle
Our product lie in Introduction Period of PLC
 Low sales
 High costs per customer
 Negative profits
 Innovator customers
 Few competitors
Objective: To create awareness of product
 Offer a basic product
 Price at cost-plus
 Selective distribution
 Awareness – dealers and early adopters
 Induce trial via heavy sales promotion
 Place
Kullu Hazira and Dahej
(Himachal Pradesh) (Gujarat)
 Place
 In the initial phase we would be outsourcing fruit processing
and packaging of Fruit Juices under FP brand.
 Fruits such as Orange, Apple, Pineapple etc would be
purchased from Kullu. Fruit Processing & Packaging would be
outsourced to local producer.
 Mango would be purchased from Hazira and Dahej. Fruit
Processing & Packaging would be outsourced to local
producer.
 Mode of Transport: Road Transport
 Pricing
 As a new comer our pricing strategy is to introduce
our products in the market at lower prices so as to
create huge demand in the market and then compete
with other competitors.

 As we come up in the demand, we will increase our

prices and will provide more efficient and affordable
juices
 Pricing Strategy
Penetration Pricing
 Our product will be lie
on penetration strategy
with high quality & low
price
 For introducing new
product
 Price low to capture
market share
 Expect to make profit
in volume
 Promotion
 As we are in the Introduction phase, our
objective is to create brand awareness
through Informative Advertising.
 Use of Print Media, Radio
Advertisement, Hoardings in Public
Spots, Sample Distribution, Organizing
Events, TV Commercial etc.
 Tie Up with major Cinema halls to
promote our products during Intervals.
 In-film advertising, in its most effective
form, is about a brand being a part of the
cinema's content.
 Web Marketing
Social Networking: In order to reach out to the TA and ensure that they feel
more connected with the brand it is necessary to start making conversation.

facebook
 Creating a community on facebook
 Creating a Fan page on facebook
 This will enable the brand to keep its TA engaged and updated on the
introduction of new flavors and events

twitter
 Creating an active account on a micro-blogging site such as twitter, where
regular tweets on product and event updates will ensure interactivity
 Followers will be encouraged to tweet their suggestions on new flavors.
 5 Year Financial Planning (Rs. in lacs)
No. Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year

A Installed Capacity (In Tonnes) 1070 1070 1070 1070 1070

Capacity Utilisation 75% 85% 85% 85% 85%
Sales Realisation (20 % Growth yoy) 115.00 138.00 165.60 198.72 238.46
B Cost of Production 23.00 27.60 33.12 39.74
Raw Materials 54.75 60.23 66.25 72.87 80.16
Packing Material 4.25 4.68 5.14 5.66 6.22
Salaries 21.25 23.38 25.71 28.28 31.11
Stores & Spares 1.50 1.65 1.82 2.00 2.20
Selling and Distribution 8.50 9.35 10.29 11.31 12.44
Administrative Expenses 5.00 5.50 6.05 6.66 7.32
Total 95.25 104.78 115.25 126.78 139.46
C Profit before Interest & Depreciation 19.75 33.23 50.35 71.94 99.01
Interest on Term Loan 3.32 3.32 3.32 3.32 3.32
Interest on Working Capital 0.28 0.28 0.28 0.28 0.28
Depreciation 2.23 2.23 2.23 2.23 2.23
Net Profit 13.92 27.40 44.52 66.11 93.18
Income-tax @ 20% 2.78 5.48 8.90 13.22 18.64
Profit after Tax 11.14 21.92 35.61 52.89 74.54

Source: MOFI (Ministry of Food Processing Industries )

 5 Year Planning
 Target of capturing 5% of the market share within a year and
30% by 2016-end
 Initially we would be outsourcing the processing of fruits, but
after 3 years we would check the feasibility of starting our own
processing plant.
 R&D Department to be set up by 2013 early, in order to
facilitate innovation in existing products.
 We would open Satellite Branches in Major Cities to facilitate
product training & improve on Market Share.
 FP Agro will be undertaking a host of energy conservation
measures
 Bibliography
Internet:
mofpi.nic.in
www.exportersindia.com
news.reportlinker.com
www.indiaagronet.com
hpagrisnet.gov.in
www.scribd.com

Ministry of Food Processing Industries :

Ministry of Food Processing Industries (MFPI): MFPI is the Nodal agency for
development of the processed food sector in the country. MFPI's financial
assistance schemes include schemes for technology upgradation, HRD, Quality
testing, R&D, TQM, backward and forward integration, development of
infrastructure including food parks, abattoirs, cold chains etc.
Thank YOU