JUICY BATTLE

Presented by: U

Need Family Product Family

Thirst Quenching Beverages

Product Class

Non-carbonated Beverages

Product Line

Juice

Product Type

Packaged Juice

ROUND #1

Vision
• To become world’s premier beverage industry and thereby creating healthy financial rewards and growth • To provide largest range of refreshing, preservative free fruit beverages for the health and well being of every household

STRATEGIC INTENT
COMMITMENT 3. Promoting health & wellness 4. Focus on product reformulation COMPETENCY 2. Strong product portfolio 3. Developing niche business 4. “Ayurvedic” foundation

MARKET STATS
Carbonated Noncarbonated
Unorganised Organised

Total Market Rs4418Cr
3800

14%

612

Total Market Rs4392Cr

86%

Total soft drink (Organised)

Total Non-carbonated market

MARKET SHARE
Non-Carbonated beverage Total: Rs615Cr
Drink 65%
9%

Fruit juice & Nectar 1%
3%

27% 8%

2%

Total: Rs215Cr
55%

30%

Fruit juice

Nectar

Drink

Real NBBD-Safal Godrej-Xs

Tropicana Parle-Appy Other

Over all segment growth rate=27%; Expensive segment growth=40%

Market share
Real 70 60 50 40 30 20 10 0 2004 2005 2006 34 35 38 62 58 55 Tropicana

Due to new entrants Dabur

MS

Trop Time

Net sales contribution of different Dabur business
Particulars Net revenue (%Growth) PAT (%Growth) EPS
CCD CHD DFL IBD Others

Rs Cr 1039.6 (17.8) 126.6 (12.2) 2.2 190 (27) 13.6 (15.8) 66.4 (29)

67%

8%

11%

13%

1%

DFL (%Growth) PBIT(DFL) (% Growth) Juices ( % Growth)

FOOD 11%
Growth only 2nd to CCD business(30%)

Real’s-Contribution to top line
Real Real active Junior Others

DFL=190Cr

Real 80%

Real active 9%

Others 5%

Junior 6%

Net sales contribution of different Pepsico business
Particulars Net revenue (%Growth) EPS (%Growth)
PI FLNA PBNA QFNA

$ Mn 32562
(Rs147KCr)

(11) 2.6 15 11376
(Rs52KCr)

PI (%Growth) PAT (% Growth)

35%

32%

28%

5%

(15) 1607
(Rs7KCr)

International 35%

(21)

TREND CHART-Dabur
1600 13.8 1400 11.7 1200 1000 8.8 12 10 8 6.9 600 400 200 0 2003 2004 2005 2006 6 4 2 0 Net revenue Profitability 14 16

Rs Cr

800

TREND CHART-PepsiCo
Net revenue 40,000 Profitability% 18.00%

16.06%
35,000 16.00%

14.39%
30,000

13.23% 11.95%

14.00%

12.52%

$ Mn

25,000 20,000

12.00% 10.00% 8.00%

15,000 10,000 5,000 0 2002 2003 2004 2005 2006

6.00% 4.00% 2.00% 0.00%

9
Objective(3) Strategy(3)
Market share(4)

8
TROPICANA 3 3 3 REAL 2 2 4

Product Category
Hi involvement Low involvement

JUICE –Variety seeking product
Significant Brand Difference Few Brand Difference

BUYING PATTERN
81 %

19 %

47%

53%

Planned

Unplanned

Impulsive

Non-Impulsve

Consumption Pattern
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
2004

Consumption pattern
2006

2004 Inhouse consumption

2006 Outside consumtion

Facts about industry
•Highly seasonal demand
30 25

•Fruit production=9 Mn tonne (growth=12%) Demand gap •Total soft drink market(juice+carbonated)=US$1Bn •Juice Market= 230 Mn Ltr •Packed juice=1% •Consumption is a group activity
MAX Cons/mnth MIN

Mn lts/mnth

20 15 10 5 0

•60% prefer to see the juice they buy

SEGMENTATION
Geographical TROPICANA
Location
Metros/mini metros

REAL
Metro/mini metro

Demographic
Age Income
Bachelor/newly married/FN1/FN2 Hi spendable income/hi asset and saving Mothers/children 614/young executives Hi spendable income/hi asset and saving

Education/occupati Educated/executive/worki Educated housewives/ executive/working on ng professionals
professionals

Social Class

SEC-A/SEC-B

SEC-A/SEC-B

Psycho graphic
Lifestyle Personality
Actualizers(status Believers/strivers oriented)/Experiencers/strivers Self-confidence Sociability

Behavioral
Knowledge of the product aware

aware

GROWTH OPPORTUNITY

Energy balance=calories in – calories out • Small, strategic and “tuck in” acquisitions leading to organic growth • Strategic alliance with vendors/Agro-industries

• •

Substitute for carbonated beverages Entering the choice set by increasing the product length Collaboration with hospitality industry/work place

Product Mapping
Variety seeking
R-Junior T-Healthy kids

Tropicana
Real T-fibre T- organic

Real

R-Active T-Light n healthy

Health seeking

Price Mapping
Price Rs 3-4/lt T T

R

R

Fruits+veg flavours

Fruits flavours

TAILORING STATEGIES TO SEGMENT

Smart Sport Symbol

Multiple Pack Sizes

For identifying healthier lifestyle products
Exotic Range of Flavors

For varied consumption needs and occasions
Spin-Cap Tetra Pack

For varied consumption tastes and choice

Retaining freshness & preventing adulteration

7
TROPICANA Segmentation(4) 2 Growth opportunity(3) 3 Tailoring needs(3) 2

9
REAL 3 3 3

ROUND #2

CUSTOMER’S NEED
• Fun for you products – to- wellness products • Addresses safety needs • “Preservative free” drink • Various flavours n variants • Real Active orangecarrot

GETTING CLOSER
• Portraying • TVC uses lifestyle youthfulness and imagery freshness • Communication • Communicating directed at distinct benefits of good health audiences

FOCUS ON SOLUTIONS

• Low sugar/low fat/low Na beverages • Committed to support active lifestyles

• Great taste and wholesome nutrition • Complete family package

8
TROPICANA Needs(4) 3 Communication(3) 2 Solution(3) 3

9
REAL 3 3 3

CREATE COMPETENCIES

• Superior technological know-how • Huge sourcing capacities

• Trusted name in natural health care over 100 yrs • Healthy product mix of natural & herbal products

DEVELOP CABABILITIES

• Linkages-upstream in the supply chain • Hub for orange Juice
– 11% of brazil production – 2Mn mt tn of orange production

• Setting up strategic manufacturing bases • Implemented SAP to enhance quality of supply chain

• Extensive distribution network

INTEGRATE FUNCTIONS

• BPT(business process transformation)

• DARE program(driving achievement of retail excellence) • Point of sale software at stockists

8
Competency(4) Capabilities(3)
Integration(3)

7
TROPICANA 4 2 2 REAL 3 2 2

ROUND #3

Competitive Advantage
• Core competency in beverage industry. • Powerful brands • Internationally tested and proven flavors • Innovation in product offering • Redefining traditional marketing dynamics • First mover advantage • Learning curve advantage

BEAT COMPETITION through innovation
• Above-the line & below-the-line promotion • Promoting as a health drink • Novelty in concept -”mixology” • Promoting Juice as social drink • “Customized” juices

SUSTAINING
through branding

Consumption 11%

Consumption 15%

Consumption/Awareness=0.64 Consumption/Awareness=0.57

Equity Vs Image
Brand equity

Tropicana Hi Real
L L
Brand image

Hi

6
Create(4) Beat(3)
Sustain(3)

8
TROPICANA 3 1 2 REAL 4 2 2

FINAL ROUND

SOCIAL RESPONSIBILITY
• Sustenance through “tripple bottom line” • S.M.A.R.T-lifestyle program for healthier living • SundeshWelfare organization • Committed to maintain ecological balance • Reforestation of Himalayas

RECOGONISE ENVIRONMENTAL CHANGES

• Training and educating farmers • Engaging in water harvesting programs • Creating health awareness programs

• Calorie consciousness • New generation getting attracted towards packed foods

5
Environmental(5) changes Responsibility(5) TROPICANA 2 3

8
REAL 4 4

CUSTOMER FOCUS
• Customer feedback. • Constant endeavor towards innovation • Commitment towards community service • Preservative free
• Taste close to real fruit

• Full of nutrients & vitamins. • Fruit + vegetable concept.

Benchmarking
• Practice EPA hierarchy: Reduce, Reuse, Recycle. • We must always strive to: Care for customers, consumers and the world we live in. • duly NABL accredited under ISO/IEC 17025 • Sell only products we can be proud of. • The flagship brand of Dabur Foods maintains leadership status (55 percent market share) • The company has decided to adopt US GAAP. • Dabur Real gets HACCP certification. • TQM and TPM are strictly Practiced

2

3

7
Focus(5) Benchmarking(5)

6
TROPICANA 4 3 REAL 4 2

Qualitative Research System
Potential market

• Indian consumer preferred fresh juice to packaged juice. • Preservatives presence deteriorates freshness • The fruit-juice market in India is pegged at 2.5 billion rupees . • Indian consumers like to add sugar when they squeeze fruit juice. We ensure that we cater to our customers' taste and preferences, and have added sugar to our juices.

96% 4%

Fresh juice

Packed juice

SCORE CARD
Point# 1 2 3 4 5 6 7 8 Total
Weightage

0.20 0.15 0.10 0.25 0.05 0.15 0.06 0.04 1.00

Real 8 9 9 7 8 8 6 6

1.6
1.35

0.9 1.75 0.4 1.2 0.36 0.24 7.8

Tropicana 9 1.8 7 1.05 8 0.8 8 2 6 0.3 5 0.75 7 0.42 8 0.32 7.4

AND THE WINNER IS…

Sign up to vote on this title
UsefulNot useful