Frooti case

analysis

The Components of the re-launch strategy of Parle-

Agro for Frooti:-
➢ Extensive market research: - The first thing that Parle-Agro
did was conducting detailed market survey. It gave lots of
information about the competitors’ strategies, customer
base and psychology and attitudes of the customers towards
their products.
➢ Defining product category: - Parle defined its product
category as the need satisfying category which quenches
the thirst and fun to drink. The product form was fruit juice
with competitors’ in the juice category like Tropicana,
Jumpin and soft drinks like Coca-Cola, Pepsi and others.
➢ Define the target audience: - The youth segment was
targeted with sub-segments Pre-teens (9-12), Teenagers
(12-15), above teenagers (16-19) which are the new impulse
category. The sporty and fun-loving nature of the teens and
their hung-out likings were taken into account.
➢ Knowledge about the competitor: - Frooti identified the
perception of the consumers towards the competitors drink
and found that Coca-Cola and Pepsi are soft drinks for youth.
It found the vacancy for a soft drink meant for the
youngsters and break through the earlier image of Frooti
ultimately convince the youth that it was a better alternative
than Colas.
➢ Differentiation and communication: - Frooti was planning to
come up as a fruit drink for youth meant for hang-out
purposes. Plan of action for the 4 P’s of marketing-
 • Product- The product will be Tetra-pack Frooti, easy to drink
• Packaging-The pack had new splash graphics in same
signature green & orange colours with Flip top and tagline
was changed to ‘Frooti-Just like that’.
• Place- The typical college going crowd hung out at the
canteens, Bus-stops, local trains, restaurants etc. so the
promotions are to be extensively carried out in these
locations as a part of which many popular teenage joints
such as restaurants, movie theatres, buses and local trains
were flooded with catchy posters asking ‘Where can you
find Digen Verma on Saturday nights?’ or ‘What is Digen
Verma’s favourite serial?’ etc.
• Promotion:- The promotion was done using a national
identity ‘Digen Verma’ who was some sort of a role model
whom others could relate to. The campaign was highly
innovative and creative so it build a hype over the
mysterious character. The campaign included Television
commercials, outdoor media campaigns, offline promotions
and online advertising campaigns.

Rationale behind the ‘Digen Verma’ campaign:-

The rationale behind this campaign was very effective, it is as
follows:-

➢ Create hype in the market- the teaser campaign stirred

tremendous interest and build hype around the brand-
ambassador as a result a lot of movement was created
around the brand .
➢ Somewhat unusual- Something mysterious always captures
the attention of the people, so to draw the attention of the
young crowd towards the long-forgotten Frooti, Digen Verma
was presented as a role model.
➢ Inconsistent image of the celebrities- The image of a
celebrity is always short-lived so there are chances that it
 might fade away with time and the brand also gets out of
the sight of the people.
➢ Mass appeal- To have mass appeal to the audience the
character should be ubiquitous enough, he had to lead a life
that normal consumers could relate to and the storyline had
to be powerful enough to sustain interest. Digen Verma had
all this in him so it received a favourable response from
many parts of India.

Success of a brand is dependent on many factors

besides the promotional campaign:-
• The campaign had been successful in not just evoking
interest but also in increasing sales.The customer awareness
of brand which it was likely to capture seemed quite
phenomenal. The sales were up by almost 30% by investing
30 million on campaign. But somewhere it seemed that
Digen Verma was becoming more popular than the product
itself, defying the very strategy.

The success of a brand is dependent on factors which could be

categorized into two segments- controllable and non-controllable.
The controllable factors are-

• Operation/ Production consist of the issues like quality of

production, improving high productivity, capacity of
production etc. Frooti has to be a quality drink with
improved productivity level so that its operational costs
were quite low.
• Marketing(Product Mix, Price, Place, Promotion) has into it
factors like need satisfying, quality of product, variants of
product, packaging, pack imagery, competitive price,
distributors and retailers margin and availability. Frooti as a
successful brand should satisfy as a refreshing drink, taste
as real mango, available in different pack size and its pack
imagery should act as a catalyst for youth segments. Its
 price should be affordable & comparable with competitors,
providing margin and delivered on time.
• HR/ Finance Department have issues of trained employees

and cost minimization. The production cost should be

minimized to increase the % of profit to achieve sound
profitability in the business.

The non-controllable factors are Political-Economic-Legal, Socio-

Cultural, Demographic, Physical- Natural, Technological,
Customer & Market, Competitors & Industry( Direct and Indirect

competition, organized and unorganized sectors). To avoid these

Frooti should be an ethical product, fulfilling all the quality
certification. Frooti as a youth drink in the market will face direct
completion from Coke & Pepsi and indirect competition from Fruit
juices, Sugarcane juice etc.

Akanks
ha Chauhan

MBA-II
year