Professional Documents
Culture Documents
A
MINI PROJECT REPORT
ON
SUBMITTED BY:
Manmath Kumar Sahu
Roll No-M2-24
PGDM (Marketing)
SIVA SIVANI
INSTITUTE OF MANAGEMENT
(Approved by the All India Council for Technical Education)
S. AARATHY SAILESH SAMPATHY
President & Chief Executive Vice-President &
Dy. Chief Executive
Date:
This is to certify that Mr. Manmath Kumar Sahu has completed the project entitled
satisfaction survey for CONSUMER PREFERENCES OF FROOTI IN
HYDERABAD & SECUNDERABAD”& “MARKETING MIX OF FROOTI
under my guidance and completed , the project successfully, for the partial
fulfillment of the Course: Dissertation in Term – 3rd of the Post Graduate Diploma
in Management - Marketing (Batch: 2007 – 2009).
Project Guide
Dr. K.H.Harish
Date:
3
Declaration
I Manmath Kumar Sahu , declare that this project report entitled “Consumer
preferences of frooti In Hyderabad and Secunderabad & Its marketing mix ” is an
original piece of work done and submitted by me towards partial fulfillment of my
Post Graduate Diploma in Management , under the guidance of “Prof. Anil Ramesh
, T Suchitra Rani ,Dr. Harish .
Date:
Acknowledgement
Date:
Place: Secunderabad Signature
5
CONTENTS
Sl. No. Topic
1) CERTIFICATE
2) DECLARATION
3) ACKNOWLEDGEMENT
4) CHAPTER – I
• Introduction
• Scope of project
• Objective of project
• Hypothesis
5) CHAPTER – II
• Company profile
• Industry profile
• Marketing Mix
6) CHAPTER – III
• Research Methodology
7) CHAPTER – IV
• SWOT Analysis
• Recommendations
• Suggestion
9) CONCLUSION
10) LIMITATION
11) BIBLIOGRAPHY
12) QUESTIONAIRE
6
CHAPTER- I
INTRODUCTION
A soft drink is a beverage, often carbonated, that does not contain alcohol.
(Carbonated soft drinks are more commonly known as soda, pop, tonic, or soda pop
in parts of the United States and Canada, or fizzy drinks in the U.K.;[1] sometimes
called minerals in Ireland) The name "soft drink" specifies a lack of alcohol by way
of contrast to the term "hard drink". The term "drink", while nominally neutral, often
carries connotations of alcoholic content. Beverages like colas, sparkling water,
iced tea, lemonade, squash, and fruit punch are among the most common types of
soft drinks, while hot chocolate, hot tea, coffee, milk, tap water, alcohol, and
milkshakes do not fall into this classification. Many carbonated soft drinks are
optionally available in versions sweetened with sugars or with non-caloric
sweeteners
SCOPE OF PROJECT
HYPOTHESIS
1.
A. Null Hypothesis
H0=Fruit Drink is the preferred attribute which customers look for in Frooti
B. Alternate Hypothesis
H1 = Fruit Drink is not the preferred factor for which customers looks in Frooti
2.
A. Null Hypothesis
H0 = frooti is a child drink
B. Alternate Hypothesis
H1= frooti is not a child drink
3.
A. Null Hypothesis
Ho = Frooti is readily available
B. Alternate Hypothesis
H1= Frooti is not readily available
8
CHAPTER-II
COMPANY PROFILE
PARLE AGRO PVT. LTD.
MISSION:
“ To provide consumers superior, wholesome agro based food and
drink bands through which Parle can build a profitable; growth oriented
organization.”
Parlet is a leading Indian Food and Beverage Company, the only
Indian transnational giant with the past experience of having
successfully launched leading soft drink brands like “Frooti, Apply, N -
Joi and Bailley”. Today its brand portfolio consists of No. 1 brands like
Frooti along with Apply, N-Joi and Bailley. Parle agro was the first to
identify the dormant mango segment in India and launch India’s first
national Mango drink - Frooti Mango. Today Frooti has an 85% market
in the Fruit Drink segment.Today, the Parle Group turnover is over
Rs.600 crore with a group strength of over 1000 employees, including
over 400 professionals.
PRODUCTS
1. FROOTI:
It is the flagship brand of Parle agro. It was introduced in 1985 and it
was the first Fruit Drink to be introduced in India.
2. BAILLEY AQUA :
It is a mineral water and was launched in the year 1993. It is one of the
first brands to get an ISI certification Bailley conforms to stringent BIS
Norms. It undergoes 51 quality control tests includes 32 chemical tests,
9
WHY FROOTI:
Soft drink market can be divided into two categories:-
1. Carbonated soft drink
2. Non-carbonated soft drink (NCSD).
10
Frooti is the market leader in the NCSD category with around 60%
market share. The NCSD market is growing but there is intese
competition among the various segments in this market. The market
share of Frooti in the NCSD category is on the decline because of the
Fruit Juice Segment, which is increasing at the rate of 20% per annum
along with the sluggish growth of the Fruit drink segment. To counter
this onslaught, Frooti has introduced PET bottle packing in 250 ml, 500
ml and 1000 ml and Tetra-pack packing in 65 ml quantity. Therefore,
we have taken up this project to suggest recommendations to Parle to
increase the share of Frooti in NCSD category and to study the market
response of the new packaging of Frooti.
ABOUT FROOTI :
Mango - India’s national and most premium fruit was a virtually
untapped segment until the year 1985, which saw the launch of Frooti
Mango in a trendy convenient tetra-pack. Frooti Mango is Parle Agro’s
flagship brand and India’s leading fruit drink with an 85% market
share.Now, Frooti also comes in PET bottle packing.Frooti is like an
Indian ambassador and is a hot favourite not only in India but all
across the world. Frooti is the first tetrapak fruit juice in India. Launched in 1984,
Frooti still holds a dominant position in the Rs300 crore tetrapak fruit juice (TFJ)
market.Frooti over these years have carved out a niche for itself in the market. Frooti
instantly caught the fancy of Indian consumer with its tetrapak and some smart
campaigns. Initially the drink was positioned as a kids drink. The product was
perceived as a healthy fruit drink by the mothers . So within a short span of time ,the
brand was an alternative to the “unhealthy” colas. The tetrapak had other benefits
also . Fruit juice is a perishable product and tetrapak have extended the shelf life of
Frooti because tetrapaks have 2 layers of paper and a plastic coating that ensured
tamper proof and enhanced shelf life.Lured by the success of Frooti, there was a
lot of new launches in the TFJ market. Players like Godrej with Jumpin, kissan etc
tried their luck in this market but failed to dislodge Frooti. Frooti was positioned as
a mango drink that is “Fresh-n-juicy” For over a 7 years, the company promoted the
product using that famous baseline. The product have tried to create excitement in
11
the market through a series of new variants and packing. But in late ninetees the
brand was facing stagnated sales. The company tried to excite the market with an
orange and pineapple variant but both the variant bombed. The came the experiment
with packaging . The YO! Frooti variant came with a slim paper can aimed at the
college going youth.Worried by the stagnating sales, Parle tried to reposition the
brand to appeal to youth aged between 16-21. The positioning changed to be more
fun based. The package also changed. The old green color of the bottle changed to
more bright mango color with lot of graphics added to it.One of the most famous
marketing campaigns India have witnessed took place during the repositioning. The
campaign is the famous “ Digen Verma “ campaign. This campaign was considered
as one of the most successful teaser campaigns in India. The campaign lasted for 15
days started in February 2001. The campaign was about a faceless person Digen
Verma. There were posters and outdoors all across the markets that had messages
like “ Who is Digen verma” “ Digen Verma was here” etc. This created lot of
excitement in the market and “Digen Verma “became the most talked about faceless
name at that time. The campaign was executed by Everest communication. But the
campaign was not followed up and the hype was not translated to long term brand
building. Frooti is basically a nectar based drink so it is not 100% fruit juice, it also
have some preservatives added to increase the shelf life. Although Frooti did not face
much competition in the category it created, competition came from a slightly
different category, 100% fruit juices. Parle saw the emergence of the “ 100% fruit
drink market and launched “Njoy” brand but it did not clicked. Parle could have
extended Frooti to this market also .The brand Real from Dabur is the main player in
this category. Real effectively positioned itself as a premium healthy drink for adults.
Frooti was not able to appeal to adults and was considered as a mango drink while
Real is not restricted to any flavour. Frooti also changed its positioning statement
from ‘ Fresh-N-juicy” to “ Juice Up your life” which have not clicked with the
customers. Although Frooti enjoys a commanding (75%) market share , Frooti is
facing stagnation. May be some serious steps should be taken to increase the usage
of the product. The launch of PET bottle Frooti is a step in this direction. Recently
Frooti also launched a “Green mango” variant just to create some hype in the market.
Frooti may have to reposition itself again to appeal to cola drinkers.
12
INDUSTRY PROFILE
Non-Carbonated
Soft Drink
COMPETITORS:
The main competitors of Frooti are as follows:-
1. Maaza
2. Slice
3. Real
4. Tropicana
5. Jumpin
We are not taking into account the nectar segment as it constitutes a
small part of the NCSD category and also, the growth is very sluggish
in this segment.
14
MARKETING MIX:
Marketing decisions generally fall into the following four controllable
categories:-
1. Product
2. Price
3. Place (distribution)
4. Promotion
The term “marketing mix” became popularized after Neil H. Borden
published his 1964 article, The Concept of the Marketing Mix. Borden
began using the term in his teaching in the late 1940’s after James
Culliton had described the marketing manager as a “mixer of
ingredients”.The ingredients in Borden’s marketing mix included
product planning, pricing, branding, distribution channels, personal
selling, advertising, promotions, packaging, display, servicing, physical
handling, and fact finding and analysis.E. Jerome McCarthy later
grouped these ingredients into the four categories that today are known
as the 4 P’s of marketing, Product, price, place and promotion.
These four P’s are the parameters that the marketing manager can
control, subject to the internal and external constraints of the
marketing environment. The goal is to make decisions that center the
four P’s on the customers in the target market in order to create
perceived value and generate a positive response.
PRODUCT DECISIONS :
The term “product” refers to tangible, physical products as well
as services. Here are some examples of the product decisions to be
made:
1. Brand name
2. Functionality
3. Styling
4. Quality
15
5. Safety
PRODUCT:
A product is anything that can be offered to a market to satisfy a want
or need.
India’s first real fruit drink in a Tetra Pak is available in - Frooti
Mango, Green Mango. Frooti Mango is from premium Indian Mangoes.
Frooti has also been introduced in PET bottle packing. Mango Frooti
contains vitamin A which is essential for eye sight, growth and healthy
skin. Frooti is a delicious and refreshing ready to serve fruit beverage.
Frooti comes in Fruit drink segment of NCSD category (NON-
CARBONATED SOFT DRINK).
PRICE DECISIONS :
Some examples of pricing decisions to be made include:
1. Pricing strategy (skim, penetration, etc)
2. Suggested retail price
3. Volume discounts and wholesale pricing
4. Cash and early payment discounts
5. Seasonal pricing
6. Bundling
7. Price flexibility
8. Price discrimination
16
PRICE:
TETRA PACK PACKAGING
QUANTITY PRICE (Rs.)
65 ml 2.50
200 ml 10.00
250 ml 12.00
8. Transportation
9. Reverse logistics
PLACE:
Frooti is the highest distributed brand in Fruit drink segment with an
85% market share in India. Frooti reaches more than 10 lakh retail
outlets through more than 1500 distributors and wholesalers directly
and indirectly. This is borne out by Parle Agro winning the Beverage
Industry award for the Best Managed Supply Chain 2002 and the
Highest Retail Availability in the year 2002. Frooti’s excellent
distribution system has already been proved in our market survey and
analysis where 90% of the respondents agreed that Frooti is readily
available to them .
PROMOTION DECISIONS
In the context of the marketing mix, promotion represents the various
aspects of marketing communication, that is, the
Communication of information about the product with the goal of
generating a positive customer response.
Promotion decisions include:
1. Promotional strategy (push, pull, etc)
2. Advertising
3. Personal selling & sales force
4. Sales promotions
5. Public relations & publicity
6. Marketing communications budget
PROMOTION:
In a strategic move, Parle Agro Ltd is revamping its marketing
plans in a bid to promote its flagship brand ‘Frooti’ in the overcrowded
18
CHAPTER- III
METHODOLOGY:
A) DATA COLLECTION
1) Primary Source
• Retailers
• Consumers
2) Secondary Source
• Website
• Magazines and Newspapers
B) RESEARCH INSTRUMENTS
• Questionnaire
• Personal interview
C) SAMPLING PLAN
1) Sampling Unit : Who is to be surveyed?
• Urban Consumers
2) Sample Size: How many people to be surveyed?
• 100 Units (of all age groups)
3) Sampling Procedure:
We have taken sample from following areas:
1) KOMPALLY
2) SUCHITRA
3) BOWENPALLY
4) PARADICE
20
CHAPTER- IV
MARKET SURVEY AND ANALYSIS
PREFERENCE OF CONSUMERS
12 %
CARBONATED
DRINK
FRUIT DRINK
80 %
INFERENCES
1. The consumers are becoming more health conscious.
2. The market share of NCSD is growing.
3. Great opportunity for Frooti to capture this growing market.
18% YES
35%
NO
CANT SAY
47%
INFERENCES
1. Frooti is not perceived by the majority as a health drink.
2. Health drink consumers should be targeted.
100% 97%
80%
60% MANGO
INFERENCES:
1. This diagram shows the percentage of respondents who are aware
about the various flavours of Frooti.
2. Less promotion of green mango flavour.
3. Less acceptance of green mango flavour among consumers.
SHOULD FROOTI COME IN OTHER FLAVOURS?
NO
23%
YES
77%
INFERENCES:
1. This diagram shows the percentage of respondents who think that
Frooti should come in other flavours.
23
WHICH FLAVOURS?
40%
35%
30%
25%
OTHER
20% GRAPE
36% APINE APPLE
33%
15% ORANGE
23%
10%
5%
8%
0%
ORANGE APINE APPLE GRAPE OTHER
INFERENCES:
1. In other flavours, consumers have gone for strawberry and lemon.
2. Consumers want Frooti in other flavours.
3. Huge market in flavours other than Mango.
4. Other than Mango, Orange and Pineapple are the most preferred
flavours .
24
CHILD
CHILD DRINK 44
DRINK 52 %
%
YOUTH
DRINK
7%
INFERENCES:
1. Frooti is more of a family drink rather than a child drink.
2. Frooti has market in all age-groups.
10%
YES
NO
90%
INFERENCES:
1. This diagram shows the percentage of respondents who think
Frooti is readily available.
2. Good distribution channel of Frooti.
3. Good demand for Frooti in the market.
25
CHOICE OF CONSUMER
MAAZA
SLICE
FROOTI
REAL
TROPICANA
INFERENCES:
1. Emergence of Real as Frooti’s main competitor.
2. Growing threat to Frooti’s leadership in NCSD category.
3. Increasing consumer preference towards Fruit juice segment.
26
60%
52%
50%
40% 34%
YES
30% NO
MAY BE
20% 14%
10%
0%
YES NO MAY BE
INFERENCES:
1. This diagram shows the percentage of respondents whose buying
behaviour is influenced by promotional schemes.
2. Consumers are attracted towards promotional schemes.
3. Buying decision of consumer can be changed through consumer
schemes.
27
3.50%
4.50% MAZZA
FROOTI
5% 4% REAL
TROPICANA
4%
JUMPING SLICE
4%
3% JUMPING
3% SLICE
3% 4% REAL
2% TROPICANA
4%
2%
FROOTI
1%
1% MAZZA
0%
MAZZA JUMPING
INFERENCES:
This diagram shows the satisfaction the consumer derives by
consuming the product in terms of money in a 1-5 point scale given on
the y-axis of the diagram.
(1 indicating BEST and 5 the WORST).
28
PET BOTTLE
7%
11%
YES
NO
CANT SAY
82%
TETRA PACK
13%
4%
YES
NO
CANT SAY
83%
TIN CAN
29
I
NFE
REN
3% YES
CE
95% 2% NO
CANT SAY
GLASS BOTTLE
2%
10%
YES
NO
CANT SAY
88%
30
11% 65 ML
YES
50% NO
CANT SAY
39%
31
200 ML
1%
17%
YES
NO
CANT SAY
82%
500 ML
7%
YES
50% NO
43% CANT SAY
1000 ML
9%
YES
49% NO
CANT SAY
42%
32
INFERENCE:
1. As Frooti in 65 ml quantity was recently introduced and half of
the respondents know about it, this shows good promotion and
good initial demand for new packaging .
90 90
80
70
60
BELOW 100ml
50
200-250ml
40 500ml
30 27.4 1000ml
20 20.4 20.4
10
0
BELOW 100ml 200-250ml 500ml 1000ml
INFERENCES
1. There is good demand for all the quantities.
2. Great demand for 200-250 ml.
3. Introduction of 65 ml was a good move.
33
OF PACKAGING
19%
30%
TETRA-PACING
PET - BOTTLE
GLOSS BOTTLE
51%
INFERENCE
34
TESTING OF HYPOTHESIS
Hypothesis 1:
1. Null hypothesis(H0)= Fruit Drink is the preferred attribute which customers
look for in Frooti
2. Alternate hypothesis (H1) = Fruit Drink is not the preferred factor for which
customers looks in Frooti
3. Level of significance= Let 5% be the level of significance in testing the
hypothesis Since the test s two tailed test , the value of z = ±1.96
4. Test formula:-
p‾ - p
Z=
√ {p (1-p)/n}
Where
p= sample proportion (calculated from graph) = 80%
p¯=population proportion (known) = 81%
n= sample size=100
.81-.8
Z=
√ {.8(1-.8)/100}
35
=.25
Hypothesis 2:
1. Null Hypothesis (H0)=frooti is a child drink
2. Alternate Hypothesis(H1)= frooti is not a child drink
3. Level of significance= Let 5% be the level of significance in testing the
hypothesis Since the test s two tailed test , the value of z = ±1.96
4. Test formula:-
p‾ - p
Z=
√ {p (1-p)/n}
Where
p= sample proportion = 44%
p¯=population proportion = 34%
n= sample size=100
Now
.34 – .44
Z=
√ {.44 (1-.44)/100}
= -2.01
5. Calculated value is not fall in acceptance level ,so the hypothesis is rejected
36
Conclusion: The Frooti is not only child drinks , it can be used by adults
Hypothesis 3:
1. Null Hypothesis (H0)= Frooti is readily available
4. Test formula:-
p‾ - p
Z=
√ {p (1-p)/n}
Where
p= sample proportion = 90%
p¯=population proportion = 91%
n= sample size=100
Now
.91 – .9
Z=
√ {.9 (1-.9)/100}
= .33
CHAPTER- V
SWOT ANALYSIS:
STRENGTHS OF FROOTI:
WEAKNESSES OF FROOTI
1. Frooti is not perceived as a health drink. As per our survey majority of our
respondent didn’t consider Frooti has a health drink.
2. Frooti has limited variety of flavour - only mango and green mango.
3. “Frooti means mango”, syndrome in the mind of consumers.
4. Margin given to retailers and distributors is less as compared to its
competitors.
5. The main target audience of Frooti is kids.
6. Frooti has no brand ambassador.
7. No brand expansion - Brand equity of Frooti is not utilized properly.
39
PLACE :
1. Retail chain of NCSD in India
2. To capture the huge unorganized sector, Frooti should be
promoted as a retailing chain outlet in India on the lines of
Barista which is in the retailing of coffee.
3. This outlet should contain all the variants of Frooti in different
flavours and quantities and it should also be served in glasses.
4. Also, this outlet can be used to provide fresh fruit juices in
various flavours at a very reasonable price. This move will help
Parle to capture a major chunk of the huge unorganized sector
which is more than Rs 500 crore.
5. But, this is a highly risky move and requires lot of capital so,
Parle should first experiment by opening a few outlets.
PROMOTION :
SUGGESTION:
1. Frooti can go for Salman Khan as a brand ambassador as he is
very popular in India and symbolizes good health. (Punch line
can be something like “After gym, have a Frooti”) Along with
him, Frooti should also go for a famous cartoon.
2. Character like Scooby Doo or Pokemon to target the kids and
both of them should feature together in the advertisement.
43
CONCLUSION:
We can conclude the following:
1. By taking some initiatives, Frooti can compete with the fruit
juice segment comprising of Real and Tropicana, and can
maintain its position as a market leader in the NCSD category.
2. The consumers response to the new packaging (PET botte and 65
ml Tetra pack) of Frooti is positive as shown in the survey.
LIMITATIONS:
1. The corporate office of Parle Agro is situated in Mumbai and so
we could not gather information from there.
2. We could not find the reason why Frooti was not introduced in
other flavours like orange, pineapple etc on all India basis (We
sent an E-Mail to the company but didn’t get any reply).
BIBLIOGRAPHY:
44
QUESTIONNAIRE
45
This questionnaire is part of a market study being conducted by me. The aim of the
study is to analyze the strategies adopted by Lifebuoy in the various stages of its
lifecycle.
Any information provided would be used only for academic purpose and kept
confidential.
1. Name:
2. Age:
3. Occupation:
4. Do you drink Soft Drinks ? Yes / No
5. If yes, which Soft Drinks ?
6. Carbonated Drinks / Fruit Drinks
7. Which fruit Drinks u like most ?
• MAZZA
• SLICE
• FROOTI
• REAL
• TROPICANA
8. Do u know Frooti is available in many flavour ? Yes /No
9. If yes what are they?
• Mango
• Green mango flavour
• Other .
10. Should Frooti come in other flavour ? Yes/ No
• Orange
• Apine apple
• Grape
• Other
12. Is Frooti a health drinks ? Yes/ No
13. Is Frooti a child drink ? Yes /No
14. Is Frooti readily available ?
15. Do you think advertising influence you to drink Frooti ? Yes/No
16. Which drink give you more value ?
• Frooti
• Mazza
• Slice
• Real
• Tropicana
• Jumping
17. Do you know Frooti is available in many packages ? Yes/ No
• Pet bottle
• Glass bottle
• Tetra pack
18. Which packages do u prefer most ?
• Pet bottle
• Glass bottle
• Tetra pack
19. Do you know Frooti is available in many quantity?
• 65 ml
• 200 ml
• 500 ml
• 1000 ml
47