A comparative study on fruit juices

Market research
By

ASHISH KUMAR KESHRI (PGD08017)

Institute Of Management Studies, Noida

2010

Institute of Manage ent Stu!ies" #$IDA

A P%o&e't Re(o%t on

Comparative Study on fruit juices

As a (a%tia) fu)fi)) ent fo% t*e a+a%! of PGDM Deg%ee un!e% AI,-E (.008 / .010)

Su0 itte! to1

Su0 itte! 0y1

MRS. SONIKA SHARMA

ASHISH K MAR K!SHRI "#$0%01&

To Whom It May Concern

This is to certify that Mr. ASHISH KUMAR KESHRI Roll Number PGD08017 of PGDM th term is a bo!afi"e re#ular stu"e!t of this i!stitute for the sessio! $%%& ' $%(%. He) She ha*e com+lete" the +ro,ect re+ort title" A Comparative Study on Fruit

Juices u!"er my su+er*isio!- as a +art of +artial fulfillme!t for the a.ar" of PGDM De#ree u!"er AI/TE. His) Her re+ort is satisfactory a!" !ot co+ie" from a!y.here to the best of my 0!o.le"#e. Date1

Si#!ature Pro,ect Su+er*isor

ACKNOWLEDGEMENT A .or0 is !e*er a .or0 of a! i!"i*i"ual. 2e o.e a se!se of #ratitu"e to the i!telli#e!ce a!" co3o+eratio! of those +eo+le .ho ha" bee! so easy to let us u!"ersta!" .hat .e !ee"e" from time to time for com+letio! of this e4clusi*e +ro,ect. I .a!t to e4+ress my s+ecial #ratitu"e to.ar"s Mrs. Sonika sharma lecturer- IMS!oi"a for hel+i!# me i! com+letio! of my +ro,ect. 5ast but !ot the least- I .oul" li0e to for.ar" our #ratitu"e to all the +eo+le .ho al.ays e!"ure" me a!" stoo" by me a!" .ithout .hom I coul" !ot ha*e e!*isa#e" the com+letio! of my +ro,ect.

Contents
1. INT OD!CTION #$ """............................................................... 8 to

1.1 Genera% Intro&'ct(on 1.) O*+ect(,es an& sco-e o. the Pro+ect 1.# 'se an& (m-ortance o. the st'&y 1./ mar0et(n1 research

). E2EA C3 MET3ODOLOG4 """""""""""""" /0 to /# #. P O5ILE O5 T3E O GANI2ATION6 72'rya 5oo&s 8 A1ro Lt&9. """""""""""""""". // to :1 /. ;) E2EA C3 ANAL42I2""""""""""""""""". :) to

/.1 Cons'mer a<areness .or .r'(t +'(ces. /.) Cons'mer &eman& .or .r'(t +'(ces /.# Cons'mer &emo1ra-h(c -ro.(%e an& -re.erence .or .r'(t +'(ces /./ Cons'mer -re.erre& *ran& /.: Cons'mer -re.erence .or -ac0a1(n1 /.; A<areness re1ar&(n1 the .resh 1o%& /.7 Com-et(tors mar0et share /.8 Most -o-'%ar .%a,or /.$ P'rchas(n1 ca-ac(ty o. cons'mer /.10 ='(ce ,ar(ety /.11 Cons'mer concern re1ar&(n1 .eat'res

:. CONCL!2ION""""""""""""""""""""".. ;# to ;: ;. ;8 ECOMMENDATION2""""""""""""""""" .. ;; to

7. APPENDI>""""""""""""""""""""""" ;$ to 71
4

A? @'est(onna(re 2am-%e A? A(*%(o1ra-hy

E>EC!TIBE 2!MMA 4
The .hole stu"y or research e4+lai!s about the co!sumer6s buyi!# beha*ior a!" their +refere!ces re#ar"i!# fruit ,uices. 7or this fi*e bra!"s .ere ta0e! i!to co!si"eratio! Real- Real Acti*e- Sai!t- Tro+ica!a a!" 7resh Gol". 8asically the em+hasis .as #i*e! to the 7resh Gol". I! this research I trie" to 0!o. the +erce+tio! re#ar"i!# the 7resh Gol" ,uice. /o!sumer buyi!# beha*ior is a #e!eric term e4+lai!s about the co!sumer choice or +refere!ce that they ha*e for a +articular +ro"uct. /o!sumer6s buyi!# beha*ior tells the com+a!ies about the mo"ificatio!s or features of the +ro"ucts. 7or this research some of the mai! features .ere ta0e! i!to co!si"eratio! li0e fla*or- a*ailability- +rice+ac0a#i!# a!" the most im+orta!t 9a.are!ess:. 8ecause "uri!# research I came to 0!o. that there are so ma!y +eo+le .ho e*e! "o!6t 0!o. about the 7resh Gol" that there is such 0i!" of fruit ,uice a*ailable i! the mar0et. So I trie" to focus o! the a.are!ess of the co!sumers. After this there are so ma!y com+etitors i! the mar0et li0e Real- Tro+ica!a etc. but the com+etitio! become tou#her .he! .e tal0 about the local ,uice ma0ers a!" sellers. The co!sumer #ets co!fuse .he! he has #ot the more o+tio!s at a! affor"able +rice i! res+ect of ;uality- a*ailability- +ac0a#i!# etc. a!" choose the +ro"uct i! .hich he feels the ma4imum satisfactio! or the best "eal. It is fou!" from the research that +eo+le #o for the +ro"uct .hich is easily a*ailable a!" affor"able a!" also it shoul" be accor"i!# to their +arameters. The strate#y for the +ro"uct ca! be cha!#e" by com+ari!# the "iffere!t factors that has obtai!e" from the research. Allocatio! of lar#est co!sumer is the im+orta!t .or0 for the +ro"ucer so that they ca! match their +ro"uct !ature .ith the +refere!ce of the co!sumer .ho are more .illi!# to buy fruit ,uices.

1. INT OD!CTION

1.1 #!N!RA' IN(RO$ )(ION

I!"ia is the .orl"<s seco!" lar#est +ro"ucer of foo" !e4t to /hi!a- a!" has the +ote!tial of bei!# the bi##est .ith the foo" a!" a#ricultural sector. The total foo" +ro"uctio! i! I!"ia is li0ely to "ouble i! the !e4t te! years a!" there is a! o++ortu!ity for lar#e i!*estme!ts i! foo" a!" foo" +rocessi!# tech!olo#ies- s0ills a!" e;ui+me!t- es+ecially i! areas of /a!!i!#- Dairy a!" 7oo" Processi!#- S+ecialty Processi!#- Pac0a#i!#7ro=e! 7oo")Refri#eratio! a!" Thermo Processi!#. 7ruits > ?e#etables- 7isheriesMil0 > Mil0 Pro"ucts- Meat > Poultry- Pac0a#e")/o!*e!ie!ce 7oo"s- Alcoholic 8e*era#es > Soft Dri!0s a!" Grai!s are im+orta!t sub3sectors of the foo" +rocessi!# i!"ustry. Health foo" a!" health foo" su++leme!ts is a!other ra+i"ly risi!# se#me!t of this i!"ustry .hich is #ai!i!# *ast +o+ularity amo!#st the health co!scious. I!"ia is o!e of the .orl"s ma,or foo" +ro"ucers but accou!ts for less tha! (.@ +er ce!t of i!ter!atio!al foo" tra"e. This i!"icates *ast sco+e for both i!*estors a!" e4+orters. 7oo" e4+orts i! (AA& stoo" at US B@.& billio! .hereas the .orl" total .as US BCD& billio!. The I!"ia! foo" i!"ustries sales tur!o*er is Rs (C%-%%% crore E( crore F (% millio!G a!!ually as at the start of year $%%%. The i!"ustry has the hi#hest !umber of +la!ts a++ro*e" by the US 7oo" a!" Dru# A"mi!istratio! E7DAG outsi"e the USA. I!"ia<s foo" +rocessi!# sector co*ers fruit a!" *e#etablesH meat a!" +oultryH mil0 a!" mil0 +ro"ucts- alcoholic be*era#es- fisheries- +la!tatio!- #rai! +rocessi!# a!" other co!sumer +ro"uct #rou+s li0e co!fectio!ery- chocolates a!" cocoa +ro"ucts- Soya3 base" +ro"ucts- mi!eral .ater- hi#h +rotei! foo"s etc. 2e co*er a! e4hausti*e "atabase of a! array of su++liers- ma!ufacturers- e4+orters a!" im+orters .i"ely "eali!# i! sectors li0e the 37oo" I!"ustry- Dairy +rocessi!#- I!"ia! be*era#e i!"ustry

etc. 2e also co*er sectors li0e "airy +la!ts- ca!!i!#- bottli!# +la!ts- +ac0a#i!# i!"ustries- +rocess machi!ery etc. The most +romisi!# sub3sectors i!clu"es 3Soft3"ri!0 bottli!#/o!fectio!ery

ma!ufacture- 7ishi!#- a;uaculture- Grai!3milli!# a!" #rai!3base" +ro"ucts- Meat a!" +oultry +rocessi!#- Alcoholic be*era#es- Mil0 +rocessi!#- Tomato +aste- 7ast3foo"Rea"y3to3eat brea0fast cereals- 7oo" a""iti*es- fla*ors etc. The emer#i!# tre!"s i! the mar0et ha*e co!fuse" +ro"ucers to sell their +ro"ucts to #ai! a++ro+riate +rofit. I!"ia is #ro.i!# "ay by "ay i! *arious sector a!" +refere!ce of +eo+le also cha!#i!# accor"i!# to cha!#e i! busi!ess tre!"s. /o!sumer buyi!# beha*ior is "iffere!t accor"i!# to the +ro"uct. This stu"y sho.s the co!sumer +refere!ce .ith res+ect to fruit ,uices. The "ema!" to.ar"s the +ro"uct ca! be 0!o.! from the "emo#ra+hic +rofile- "e!sity of +o+ulatio!- retail li!0s a!" their e4+ectatio!s to.ar"s the +ro"uct. 7ruit ,uices !o. a "ay become a social "ri!0 .hich ca+ture" the atte!tio! of each i!"i*i"ual of the society. The restrictio!s for each ty+e of alcoholic "ri!0s #a*e a ultimate .ay of "ema!" for fruit ,uices. I! I!"ia! mar0et the se*er com+letio! amo!# the +ro"ucers ha*e e!coura#e" them to #o for i!!o*ati*e .ays. The com+etitors ha*e a stro!# belief to.ar"s their bra!" a!" +ro"ucts. Pro"ucers ha*e i!*erte" their +refere!ces for mar0eti!# their +ro"ucts !ear local co!sumers. The co!sumers are mostly lea! to.ar"s the bra!"s .hich come across them i! the "aily life .hile #oi!# throu#h tele*isio!- !e.s +a+ers- a!" ma#a=i!es- ba!!ers "is+laye" i! roa"s a!" from .ebsites. The ,uice mar0e" ha" tur!e" i!to a com+etiti*e mar0et as there are similar com+etitors i! the mar0et ser*i!# same ty+e of ,uice by "iffere!t bra!" !ame. The bra!" !ame of fruit ,uices ha*e cha!#e" the co!sumer +refere!ces because of their easy a*ailability- +rice- ;uality+ac0a#i!#- ;uality etc. Here i! this case those ty+e of fruit ,uices bra!" ha*e ta0e! i!to accou!t .ho has their most mar0et shares i! the mar0et. The co!sumer buyi!# beha*ior sho.s a .ay to the com+etitors i! .hat res+ect they ca! e!ha!ce themsel*es to e4ist i! the mar0et. The bli!" i!ter+retatio! of +ro"ucer force itself to.ar"s se*ere loss. The +erce+tio! to.ar"s the i!"i*i"ual +ro"uct sho.s that .hether the co!sumer .ill buy it or !ot. The emer#i!# cha!#es obser*e" i! the
6

"iffere!t le*els of co!sumers. The co!sumer also cha!#es their +refere!ces accor"i!# to their ca+ability of buyi!# for that +articular +ro"uct. The "isti!ct characteristics may sometimes attract the co!sumers to buy the +ro"uct .hich they ca! !ot ha*e +urchase" before. The retail chai! also +lays a! im+orta!t role to.ar"s it .hich sho.s the a*ailability of +ro"uct at the time of !ee". The co!sumers are a#ai! "isti!#uishe" i!to "iffere!t a#e #rou+s because of their "iffere!t co!sum+tio! +atter! of foo". I! some case it is obser*e" that fruit ,uices are o!ly acce+table for s+orts +erso! for e!er#y as .ell as for rela4atio!- but the health co!scious!ess factor has affecte" a lot each i!"i*i"ual so that they ca! "ri!0 fruit ,uices for #oo" health. The cam+ai#! for fruit ,uices ha*e sol*e" much "isbelief amo!# the co!sumers. The stu"y sho.s co!sumer buyi!# beha*ior by co!si"eri!# the +ro"uct li0e Tro+ica!a- Real- 7resh #ol"- Sai!t a!" 5eh berry. Some of the factors are ta0e! i!to co!si"eratio! li0e +rice- bra!"- ;uality- co!sumer ty+e a!" +rofessio! of "iffere!t co!sumers .ho +urchase fruit ,uices. Their tech!i;ue of buyi!# is the 0ey of our stu"y. The buyi!# beha*ior has a! im+orta!t role to.ar"s the #ro.th of i!"i*i"ual +ro"uct i! the com+etiti*e mar0et. The mar0et is "y!amic i! !ature a!" !ee"s i!!o*atio!s for e4iste!ce.

10

1.) OA=ECTIBE2 8 2COPE O5 T3E P O=ECT To ana%yCe the cons'mer a<areness .or .r'(t +'(ces.
This ob,ecti*e #i*es a clear i"ea re#ar"i!# the co!sumer a.are!ess to.ar"s the fruit ,uice as .ell as to.ar"s the "iffere!t bra!"s +re*aili!# i! the mar0et. The co!sumer6s a.are!ess creates a "ema!" to.ar"s the +articular +ro"uct.

Ana%yCe the cons'merD the(r *'y(n1 *eha,(or an& &eman&.

The co!sumer buyi!# beha*ior is a! im+orta!t +arameter .hich co!sist of co!sumer +refere!ces. The "ema!" of a +ro,ect ca! be 0!o.! from the co!sumer6s buyi!# +atter! a!" +arameters that he co!si"ers "uri!# buyi!# a fruit ,uice li0e ;uality- a*ailability- +rice- +ac0a#i!# a!" "eli*ery mo"e. The "ema!" also "e+e!"s u+o! some of the other factors li0e +urchasi!# +o.er +o+ulatio!+romotio!al acti*ities of +ro"uct i! the mar0et a!" seaso!ality.

!n&erstan&(n1 the &emo1ra-h(c -ro.(%e o. cons'mers.

The co!sumer acce+ta!ce "e+e!"s u+o! the 0!o.le"#e a!" maturity le*el that he has #ai!e" "uri!# his a#e for the "iffere!t foo" habits +re*aili!# i! the surrou!"i!#. The a#e factor is a! im+orta!t factor to 0!o. +ro"uct "ema!" for a +articular a#e #rou+. So the i!terest ca! be ma"e to moti*ate those a#e #rou+s for buyi!# their +ro"uct.

I&ent(.(cat(on o. (n.%'enc(n1 .actor .or -'rchase.

11

/o!sumers #e!erally #o for some of the #e!eral factors .hile +urchasi!# a +ro"uct li0e bra!"- com+a!y !ame- e4+iry "ate- +rice- i!#re"ie!ts a""e"- +rice a!" ;uality. The +erce+tio! .hich a customer i!ter+ret from the outer le*el of the +ro"uct i!flue!ce him a lot to buy that. The i!flue!ci!# factor of +urchasi!# ma0es a +ro"ucer to u!"ersta!" the customer !ee".

1.# !2E AND IMPO TANCE O5 T3E P O=ECT

To 0!o. about the *arious as+ect of ,uice mar0et a!" also ho. to +e!etrate i! the .ell establishe" mar0et. Some of the thi!#s are re;uire" to 0!o.- .hich are as #i*e! belo. I

Ea?. 5 !IT =!ICE MA KET AND CON2!ME AE3ABIO

T3E MA KET 2ENA IO 5O 5 !IT =!ICE2

I!"ia +ro"uces about A millio! to!s of fruits e*ery year- #ro.i!# at a rate of ($J +er a!!um. The total mar0et for fruit ,uices is $D% millio! liters .hich i!clu"es both +ac0e" a!" freshly ma"e fruit ,uices. The +ro+ortio! of +ac0e" fruit ,uices is small at ,ust D.C millio! liters ,ust o*er (J of mar0et- but e*e! this hu#e *olume tra!slate to ,ust $% milliliters +er ca+ital co!sum+tio! as a#ai!st C@ liters i! Germa!y- C$.@ liters i! S.it=erla!" a!" DA liters i! USA. The 0ey issue before the mar0ets .as to raise the co!sum+tio! of +ac0et fruit ,uices. The co!sumer +erce+tio! is !ot the co!sta!t o!e for the "iffere!t +ro"ucts a*ailable i! the mar0et. The +erce+tio! of co!sumer "e+e!"s u+o! the a"*a!ceme!t ma"e by the +ro"ucers .hich attracts co!sumers a lot a!" hol"s the mar0et share is hu#e ma!!er. The mar0et of fruit ,uices is co!cer!e" about the facts behi!" fruit ,uices so the !ee" for it is !ot "imi!ishi!# but it is ra+i"ly i!creasi!# "ay by "ay. 7or e*ery fruit ,uice there is certai! amou!t of mar0et share but the real hol"i!# of mar0et share "e+e!"s u+o! the i"e!tity of the +ro"uct by tac0i!# i!to accou!t +rice- bra!"- ;uality- ;ua!tity- +ac0a#i!# a*ailability- fla*or etc. The 0ey Note Mar0et Re+ort o! fruit ,uices a!" health "ri!0 co*ers the mar0et for fruit ,uice- health "ri!0s a!" fruit "ri!0s. I! #e!eral- carbo!ates are e4clu"e" from this
1.

re+ort- althou#h "ri!0s of this ty+e also be fruit base". Ho.e*er- ther is some o*erla+ .ith the carbo!ates sector as health "ri!0s- .hich mi#ht be carbo!ate" a!" a*ailable i! rea"y to "ri!0 formats of cor"ials are i!clu"e". 7or I!"ia!s "ri!0i!# ,uice is !ot a !e. co!ce+t. Street cor!er *e!"ors ha*e bee! +o+ular for years. 7ruit ,uices i! the u!or#a!i=e" se#me!t are co!si"ere" chea+er a!" fresher by the co!sumers- e*e! thou#h they are relati*ely u!hy#ie!ic. The or#a!i=e" !atural ,uice mar0et is curre!tly i! a !asce!t sta#e thou#h it is #ro.i!# at a healthy rate D@3C%J +er a!!um. This mar0et has ha" hi#h e!try barriers. 7e. customers are co!*i!ce" about +ac0a#e" ,uice bei!# +reser*ati*e free- a!" therefore- as healthy as freshly s;uee=e" ,uice. The "ri!0s mar0et is relati*ely more mature a!" #ro.i!# at a healthy at $%3$@J. I! $%%D- the total UK fruit ,uices a!" health "ri!0s mar0et .as .orth a! estimate" K $.(A billio! at retail selli!# +rice ERSPG- a rise of . J o! $%%$. 7ruit ,uice .as the lar#est sector i! $%%D- accou!ti!# for C%.$J of the total mar0et. Des+ite the relati*ely mature !ature of the fruit ,uice sector- the mar0et #re. stro!#ly i! terms of both *alue a!" *olume bet.ee! (AAA a!" $%%D. I! a""itio!- fruit ,uices- fruit "ri!0s a!" health "ri!0s recor"e" a hi#h househol" +e!etratio! le*el. A !umber of factors co!tribute" to this #ro.th- i!clu"i!# the i!creasi!# i!terest i! health a!" "iet- .hich is u!"oubte"ly o!e of the mai! "ri*ers. I! #e!eral- fruit ,uices a!" health "ri!0s are re#ar"e" as healthy choices- certai!ly i! com+ariso! to alter!ati*e soft "ri!0s- such as carbo!ates. I! a""itio!- the stre!#th of the eco!omy a!" risi!# househol" "is+osable i!come le*els ha*e co!tribute" to the #ro.th of +remium3+rice" +ro"ucts- such as freshly3 s;uee=e" ,uice. L*er the !e4t @ years- 0ey Note forecasts that the fruit ,uices a!" health "ri!0s mar0et .ill remai! healthy- .ith sales #ro.i!# by a! a*era#e a!!ual rate of ,ust o*er J. I!creasi!# co!cer!s relati!# to health a!" "iet .ill +lay a ma,or role i! the mar0et- as co!sumers mo*e a.ay from +ro"ucts that are +ercei*e" as bei!# u!healthy- such as carbo!ate" soft "ri!0s- to.ar"s more !atural alter!ati*es- such as fruit ,uices. I! a""itio!- #ro.i!# a.are!ess of the im+orta!ce e of the Go*er!me!t6s Mfi*e3a3 "ay6 cam+ai#! to i!crease fruit a!" *e#etable co!sum+tio! .ill e!coura#e !e. e!tra!ts i!to

12

the mar0et. I! +articular- you!#er co!sumer mi#ht re#ar" fruit ,uice as a co!*e!ie!t .ay of boosti!# their co!sum+tio! of fruit a!" *e#etables. The fruit ,uice sector .ill be booste" by #ro.i!# "ema!" for +remium3+rice" +ro"ucts- such as smoothies. I! a""itio!- hea*y mar0eti!# e4+e!"iture a!" the i!tro"uctio! of !e. +ro"ucts that are fortifie" .ith *itami!s a!" other a""iti*es shoul" hel+ to "ri*e sales. I! some Euro+ea! cou!tries- "ri!0 .ith a""e" *itami! A- / a!" E ha*e +ro*e" *ery successful. Althou#h this sector is still i! its i!fa!cy i! the UK- it coul" sho. ra+i" #ro.th o*er the !e4t @ years. CON2!MPTION 3AAIT2 &(J of fruit ,uice co!sum+tio! i! I!"ia .as u!+la!!e" a!" D&J .as +ure im+ulse. Pla!!e" +urchase of fruit ,uice .as +re*e!te" o!ly i! metros. %J of fruit ,uices co!sum+tio! ha++e!e" outsi"e the home. 7ruit ,uice co!sum+tio! .as a #rou+ acti*ity3,ust $J of the +o+ulatio! ha" the fruit ,uice alo!e. I!"ia!s +refer 9fresh ,uices: ma"e i! fro!t of their eyes. The ori#i! of this +refere!ce lies i! the belief that is +ac0e" looses fresh!ess. I! the +ast (@ years- more tha! (% bra!"s of tetra +ac0 a!" bottle" fruit ,uices ha*e bee! lau!che" i! I!"ia. This bra!" also ha++e! to be the tetra +ac0e" fruit "ri!0s a!" belo!#i!# to the lar#est soft "ri!0 ma!ufacturer i! I!"ia. I! a cou!try use" to ha*i!# fresh foo" all the time- the co!sumer .a!te" to see the +ro"uct. I! foo" +ro"ucts at time seei!# is creati!# the im+ulseNN tetra+ac0 ma!ufactures ha*e "efi!e" the basic !ee" of I!"ia! co!sumers by !ot allo.i!# the co!sumers to see the +ro"uct. I! a cou!try li0e I!"ia .hich has limite" bu"#ets for +ac0a#i!# #i*e! the lo. "is+osable i!come le*el a!" thereby the +ac0e" foo"s "o!6t carry *ery attracti*e a!" i!*iti!# +ac0 #ra+hics- the lac0 of tra!s+are!cy a""s to "iscomfort le*els of the co!sumers. Research sho.e" that more tha! %J +referre" to see the fruit ,uice they .ere buyi!#. I!"ia is becomi!# a cou!try .hich .a!ts .ester! style +ac0i!# .ith

13

I!"ia! style taste a!" thi!s .as +osi!# a #reat challe!#e .ith limite" col" stora#e a!" col" chai! ca+abilities. ?i*ita3a !e. e!tra!t has trie" to o*ercome the 9fresh!ess of the ,uice: issue by +ac0i!# fruit ,uices i! ase+tic PET bottle .ith a !o +reser*ati*es label. The co!sumer is reassure" by bei!# able to see the +ro"uct before buyi!#.

INDIAN KE4 2EN2!2 2TATIC2 O5 LA2T 4EA

PLPU5ATILN RURA5 PLPU5ATILN UR8AN PLPU5ATILN MA5E PLPU5ATILN 7EMA5E PLPU5ATILN DENSITP PERSLN PER HLUSE HL5D DISTRI/TS UR8AN AGG5LMERATILN TL2NS ?I55EGES EINHA8ITEDG
Qe4clu"i!# Assam a!" Rammu > Kashmir

((%% M!. &%@ M! EODJG $&A M! E$ JG @O& M!E@$JG @% M!EC JG $A%)KM$Q @.@$Q C AND DO & $O%%%

Table3(
14

E*?. T3E LATENT DEMAND AND POTENTIAL IND!2T IAL EA NING2 5O 5 !IT =!ICE2 IN INDIA

The co!ce+t of is rather subtale. The term late!t ty+ically refers to somethi!# that is "orma!t- !ot obser*able- or !ot yet reali=e". Dema!" is the !otio! of a! eco!omic ;ua!tity that a tar#et +o+ulatio! or mar0et re;uires u!"er "iffere!t assum+tio!s of +rice- ;uality a!" "istributio!- amo!# other factors. 5ate!t "ema!"- therefore- is commo!ly "efi!e" by eco!omists as the i!"ustry ear!i!# of a mar0et .he! that mar0et become accessible a!" attracti*e to ser*e by com+eti!# firms. 5ate!t "ema!"therefore- is commo!ly "efi!e" by eco!omists as the i!"ustry ear!i!#s of a mar0et .he! that mar0et becomes accessible a!" attracti*e to ser*e by com+eti!# firms. It is a measure- therefore- of +ote!tial i!"ustry ear!i!#s EP.I.E.G or total re*e!ues E!ot +rofitG if I!"ia is ser*e" i! a! efficie!t ma!!er. It is ty+ically e4+resse" as the total re*e!ues +ote!tially e4tracte" by firms. The 9mar0et: is "efi!e" at a #i*e! le*el i! the *alue chai!. There ca! be late!t "ema!" at the retail le*el- at the .holesale le*el- the ma!ufacturi!# le*el- a!" the ra. material le*el Ethe P.I.E. of hi#her le*els of the *alue chai! bei!# al.ays smaller tha! the P.I.E. of le*els at lo.er le*els of the same *alue chai!- assumi!# all le*els mai!tai! mi!imum +rofitabilityG. The late!t "ema!" for fruit ,uices i! I!"ia is !ot actual or historic sales. Nor is late!t "ema!" future sales. I! fact- late!t "ema!" ca! be either lo.er or hi#her tha! actual sales if a mar0et is i!sufficie!t Ei.e. !ot re+rese!tati*e of relati*ely com+etiti*e le*elsG. I!efficie!cies arise from a !umber of factors- i!clu"i!# the lac0 of i!ter!atio!al o+e!!ess- cultural barriers to co!sum+tio!- re#ulatio!s- a!" cartel3li0e beha*ior o! the +art of firms. I! #e!eral- ho.e*er- late!t "ema!" is ty+ically lar#er tha! actual sales i! a mar0et.

P OD!CTION O5 5 !IT =!ICE2 IN INDIA

ABE AGE E1$$)F1$$/? Aanana +'(ces AO(&
15

)00)

)00#

)00/

EG000 TONNE2? ( &$% ( &$%

( A$%

Man1o +'(ces Orna1e +'(ces A--%e +'(ces Lemons an& %(me +'(ces P(nea--%e +'(ces Gra-es +'(ces

(%(%& (OCD ($%@ & D A@ &C

(% C% D($% (( % (CC% ((&% ($(% TA85E3$

(%O&% D%O% (CO% (C$% (D(% ((@%

(%&%% D%O% (CO% (C$% (D%% ($%%

7or

reaso!s "iscusse" later- this re+ort "oes !ot co!si"er the !atio! of 9u!it

;ua!tities:- o!ly total late!t re*e!ue Ei.e. a calculatio! of +rice time ;ua!tity is !e*er ma"e- thou#h o!e is im+lie"G. The u!ites use" i! this re+ort are U.S. "ollars !ot a",uste" for i!flatio! Ei.e. the fi#ure i!cor+orate i!flatio!ary tre!"sG. If i!flatio! rates *ary i! a substa!tial .ay com+are" to rece!t e4+erie!ce- actually sales ca! also e4cee" late!t "ema!" E!ot a",uste" for i!flatio!G. L! the other ha!"- late!t "ema!" ca! be ty+ically hi#her tha! actual sales as there are ofte! "istributio! i!efficie!cies that re"uce actual sales belo. the le*el of late!t "ema!". As me!tio!e" i! the i!tro"uctio!- this stu"y is strate#ic i! !ature- ta0i!# a! a##re#ate a!" lo!# ru! *ie.- irres+ecti*e of the +layers or +ro"ucts i!*ol*e". I! fact- all the curre!t +ro"ucts or ser*ices o! the mar0et ca! cease to e4ist i! their +rese!t form Ei.e. at a bra!"- R>D s+ecificatio!- or cor+orate ima#e le*elG a!" all the +layers ca! be re+lace" by other firms Ei.e. *ia e4its- e!tries- mer#ers- ba!0ru+tcies etcG- a!" their .ill still be late!t "ema!" for fruit ,uices at the a##re#ate le*el. Pro"uct a!" ser*ice offeri!#s a!" the actual i"e!tity of the +layers i!*ol*e"- .hile im+orta!t for certai! issues are relati*ely u!im+orta!t for estimates of late!t "ema!". I! or"er to estimate the late!t "ema!" for fruit ,uices across the states or u!io! territories a!" cities of I!"ia- .e use to multista#e a++roach. 8efore a++lyi!# the a++roach- o!e !ee"s a basic theory from .hich such estimates are create". I! this case- .e hea*ily rely o! the use of certai! basic eco!omic assum+tio!s. I! +articularthere is a! assum+tio! #o*er!i!# the sha+e a!" ty+e of a##re#ate late!t "ema!" fu!ctio!s. 5ate!t "ema!" fu!ctio!s relate the i!come of a state or u!io! territory- cityhousehol" or i!"i*i"ual to reali=e" co!sum+tio!. 5ate!t "ema!" Eofte! reali=e" as co!sum+tio! .he! a! i!"ustry i! efficie!tG at a!y le*el of *alue chai! ta0es +lace if a!
17

e;uilibrium is reali=e". 7or firms to ser*e a mar0et- they must +ercei*e a late!t "ema!" a!" be able to ser*e that "ema!" at a mi!imal retur!. The si!#le most im+orta!t *ariable "etermi!i!# co!sum+tio!- assumi!# late!t "ema!" e4ists- is i!come Eor other fi!a!cial resources at hi#her le*els of the *alue chai!G. Lther factors that ca! +i*ot or sha+e "ema!" cur*es i!clu"e e4ter!al or e4o#e!ous shoc0s Ei.e. busi!ess cycleG- a!" or cha!#es i! utility for the +ro"uct i! ;uestio!. I#!ori!#- for the mome!t- e4o#e!ous shoc0s a!" *ariatio!s i! utility across #eo#ra+hies- the a##re#rate relatio! bet.ee! i!come a!" co!sum+tio! has bee! a ce!tral theme i! eco!omics. A!y stu"y of late!t "ema!" re;uires that some sta!"ar" be establishe" to "efi!e 9efficie!tly ser*e":. Ha*i!# im+leme!te" *arious alter!ati*es a!" matche" these .ith mar0et outcomes- .e ha*e fou!" that the o+timal a++roach is to assume that certai! 0ey i!"icators are more li0ely to reflect efficie!cy tha! others. These i!"icators are #i*e! #reater .ei#ht tha! others i! the estimatio! of late!t "ema!" com+are" to others for .hich !o 0!o.! "ata are a*ailable. Lf the ma!y alter!ati*es- .e ha*e fou!" the assum+tio!s that the hi#hest a##re#ate i!come a!" hi#hest i!come3+er3ca+ita mar0ets reflect the best sta!"ar" for 9efficie!cy:. Hi#h a##re#ate i!come alo!e is !ot sufficie!t Ei.e. some cities ha*e hi#h a##re#ate i!come- but lo. i!come +er ca+ita a!" ca!!ot assume to be efficie!tG. A##re#ate i!come ca! be o+eratio!al =e" i! a !umber of .aysi!clu"i!# #ross "omestic +ro"uct Efor i!"ustrial cate#oriesG- or total "is+osable i!come Efor househol" cate#oriesH +o+ulatio! times a*era#e i!come +er ca+ita- or !umber of househol"s times a*era#e househol" i!comeG. 5ate!t "ema!" is therefore estimate" usi!# "ata collecte" for relati*ely efficie!t mar0ets from i!"e+e!"e!t "ata sources Ee.#. official /hi!ese a#e!cies- the .orl" resource i!stitute- the or#a!i=atio! for eco!omic coo+eratio! a!" "e*elo+me!t- *arious a#e!cies from u!ite" !atio!s- i!"ustry tra"e associatio!- the i!ter!atio!al mo!etary fu!"- Euromo!itor- Mi!tel- Thomso! fi!a!cial ser*ices- the U.S. i!"ustrial outloo0 a!" .orl" ba!0G. De+e!"i!# o! ori#i!al "ata source use"- the "efi!itio! of 9fro=e! fruits a!" co!ce!trate" fruit ,uices: is establishe". I! the case of this re+ort- the "ata .ere re+orte" at the a##re#ate le*el- .ith !o further brea0"o.! or "efi!itio!. I! other .or"sa!y +ote!tial +ro"uct or ser*ice that mi#ht be i!cor+orate" .ithi! fro=e! fruits a!"
18

co!ce!trate" fruit ,uices falls u!"er this cate#ory. Public source rarely re+ort "ata at the "isa##re#ate" le*el i! or"er to +rotect +ri*ate i!formatio! from i!"i*i"ual firms that mi#ht "omi!ate a s+ecific +ro"uct3mar0et. These sources .ill therefore a##re#ate across com+o!e!ts of a cate#ory a!" re+ort o!ly the a##re#ate to the +ublic. 2hile +ri*ate "ata are certai!ly a*ailable- this re+ort o!ly relies o! +ublic "ata at the a##re#ate le*el .ithout relia!ce o! the summatio! of *arious cate#ory com+o!e!ts. I! other .or"s- this re+ot "oes !ot a##re#ate a !umber of com+o!e!ts to arri*e at the 9.hole:. Rather- it starts .ith the 9.hole:- a!" estimates the .hole for all states or u!io! territories a!" cities i! I!"ia E.ithout !ee"i!# to 0!o. the s+ecific +arts that .e!t i!to the .hole i! the first +laceG. 8ase o! the a##re#ate *ie. of co!ce!trate" of fruit ,uices as "efi!e" abo*e - "ata .ere the! collecte" for as ma!y #eo#ra+hic locatio!s as +ossible for the same "efi!itio!- at the same le*el of the *alue chai!. This #e!erates a co!*e!ie!ce sam+le of i!"icators from .hich com+arable fi#ures are a*ailable. If the series i! ;uestio! "o !ot reflect the same accou!ti!# +erio"- the! a",ustme!ts are ma"e. I! or"er to elimi!ate short term effects of busi!ess cycles- the series are smoothe" usi!# a! $ year mo*i!# a*era#e .ei#hti!# scheme Elo!#er .ei#hti!# schemes "o !ot substa!tially cha!#e the resultsG. If "ata are a*ailable for a #eo#ra+hic re#io!- but these reflect short3ru! aberratio!s "ue to e4o#e!ous shoc0s Esuch as .oul" be the case of beef sales i! a state or u!io! territory or city stric0e! .ith foot a!" mouth "iseaseG- these obser*atio!s .ere "ro++e" or 9filtere": from the a!alysis. I! some cases- "ata are a*ailable o! a s+ora"ic basis. I! other cases- "ata may be a*ailable for o!ly o!e year. 7rom a 8ayesia! +ers+ecti*e- these obser*atio!s shoul" be #i*e! #reatest .ei#ht i! estimati!# missi!# years. Assumi!# that other factors are hel" co!sta!t- the missi!# years are e4tra+olate" usi!# cha!#es a!" #ro.th i! a##re#ate !atio!al- state or u!io! territory a!" city le*el i!come. 8ase" o! the o*erri"i!# +hiloso+hy o! a lo!# ru! co!sum+tio! fu!ctio! E"efi!e" earlierG- states or u!io! territories a!" cities .hich ha*e missi!# "ata for a!y #i*e! year- are estimate" base" o! historical "y!amics of a##re#ate i!come for that #eo#ra+hic e!tity. Gi*e! the "ata a*ailable for the first three ste+s- the late!t "ema!" is estimate" usi!# a 9*aryi!#3 +arameter cross3sectio!ally +oole" time series mo"el:. Sim+ly state"16

the effect of i!come o! late!t "ema!" is assume" to be co!sta!t u!less there is em+irical e*i"e!ce to su##est that this effect *aries Ei.e. the slo+e of the i!come effect is !ot !ecessarily same for all states or u!io! territories or citiesG. This assum+tio! a++lies alo!# the a##re#ate co!sum+tio! fu!ctio!- but also o*er time Ei.e. !ot all states or u!io! territories or cities i! I!"ia are +ercei*e" to ha*e the same i!come #ro.th +ros+ects o*er timeG. A!other .ay of loo0i!# at this is to say that late!t "ema!" for fro=e! fruits a!" co!ce!trate" fruit ,uices- a""s- "ri!0s- a!" !o! alcoholic coc0tails is more li0ely to be similar across states or u!io! territories or cities that ha*e similar characteristics i! terms of eco!omic "e*elo+me!t. The a++roach is useful across #eo#ra+hic re#io!s for .hich some !otio! of !o!3 li!earity e4ists i! the a##re#ate cross re#io! co!sum+tio! fu!ctio!. 7or some cate#ories- ho.e*er the rea"er must reali=e that the !umbers .ill reflect a state6su!io! territory6s or city6s co!tributio!s to late!t "ema!" i! I!"ia a!" may !e*er be reali=e" i! the form of local sales. No!li!earities are assume" i! case .here filtere" "ata e4ist alo!# the a##re#ate co!sum+tio! fu!ctio!. 8ecause I!"ia has more tha! @-%%% cities- there .ill al.ays be those cities- es+ecially to.ar" the bottom of the co!sum+tio! fu!ctio!- .here !o!3li!er estimatio! is sim+ly !ot +ossible. 7or these cities- e;uilibrium late!t "ema!" is assume" to be +erfectly +arametric a!" !ot a fu!ctio! of .ealth Ei.e. a city6s stoc0 of i!comeG- but a fu!ctio! of curre!t i!come Ea city6s flo. of i!comeG. I! the lo!# ru!- if a state or u!io! territory has !o curre!t i!come- the late!t "ema!" for fruit ,uices is assume" to a++roach =ero. The assum+tio! is that .ealth stoc0 fall ra+i"ly to =ero if flo. i!come falls to =ero Ei.e. cities .hich ear! lo. le*el of i!come .ill !ot use their sa*i!#s- i! the lo!# ru!- to "ema!" co!ce!trate" fruit ,uicesG. I! a #ra+hical se!se- for lo. i!come cities- late!t "ema!" a++roaches =ero i! a +arametric li!ear fashio! .ith a =ero3=ero i!terce+t. I! this sta#e of estimatio! +roce"ure- a lo.3i!come city is assume" to ha*e a late!t "ema!" +ro+ortio!al to its i!come- base" o! the cities closest to it o! the a##re#ate co!sum+tio! fu!ctio!. 8ase" o! the mo"els "escribe" abo*e- late!t "ema!" fi#ures are estimate" for all ma,or cities i! I!"ia. These are the! a##re#ate" to #et state or u!io! territory totals. This re+ort co!si"ers a city as a +art of re#io!al a!" !atio!al mar0et. The +ur+ose is to
.0

u!"ersta!" the "e!sity of "ema!" .ithi! a state or u!io! territory a!" the e4te!t to .hich a city mi#ht be use" as a +oi!t of "istributio! .ithi! its state or u!io! territory. 7rom a! eco!omic +ers+ecti*e- ho.e*er- a city "oes !ot re+rese!t a +o+ulatio! .ithi! ri#i" #eo#ra+hical bou!"aries. To a! eco!omist or strate#ic +la!!er- a city re+rese!ts a! area of "omi!a!t i!flue!ce o*er mar0ets i! a",ace!t areas. This i!flue!ce *aries from o!e i!"ustry to a!other- but also from o!e +erio" of time to a!other. 2e allocate late!t "ema!" across areas of "omi!a!t i!flue!ce base" o! the relati*e eco!omic im+orta!ce of cities .ithi! its state or u!io! territory. Not all cities Ee.#. the smaller to.!s G are estimate" .ithi! each state or u!io! territory as "ema!" may be allocate" to a",ace!t areas of i!flue!ce. Si!ce some cities ha*e hi#her eco!omic .ealth tha! others .ithi! the same state or u!io! territory- a city6s +o+ulatio! is !ot #e!erally use" to allocate late!t "ema!". Rather- the le*el of eco!omic acti*ity of the city *is3S3*is is use".

Ec?. 5 !IT =!ICE 2EGMENT POI2ED 5O #0H G OWT3

The bra!"e" fruit ,uice mar0et i! I!"ia is estimate" to be .orth Rs @%% crores or#a!i=e" fruit be*era#e mar0et E!ectors- "ri!0s a!" ,uices combi!e"G a!" the se#me!t is #ro.i!# at about D%J +er a!!um. 8i# +layers li0e Dabur- Pe+si- Go"re, a!" Parle A#ro are alrea"y i! the mar0et a!" i! *ie. of the s.ift #ro.th i! the mar0et!e.comers li0e Surya 7oo"s a!" A#ro- Mother Dairy- 5a"a0h 7oo"s- Pioma I!"ustries ha*e come i!to the mar0et .ith !e. +ro"uct i! rece!t years. Primary foo" +rocessi!# is a ma,or i!"ustry .ith a hi#hly fra#me!te" structure that i!clu"es hu!"re"s of thousa!"s of rice3mills a!" hullers- flour mills- +ulse mills- a!" oil see" mills- se*eral thousa!"s of ba0eries- tra"itio!al foo" u!ites a!" fruits- *e#etable a!" s+ice +rocessi!# u!ites i! the u!or#a!i=e" sector. I! com+ariso!- the or#a!i=e" sector is relati*ely small- .ith arou!" @( flour mills- @ & fish +rocessi!# u!ites- @$AD fruit a!" *e#etable u!its- (O( meat +rocessi!# u!its a!" !umerous "airy +rocessi!# u!its at state a!" "istrict le*el. I! I!"ia is almost e;ually "i*i"e" bet.ee! the or#a!i=e" a!" u!or#a!i=e" sectors.ith the or#a!i=e" sector hol"i!# C&J of the share. 2hile +ro"ucts li0e ,uices a!" +il+ co!ce!trates are lar#ely ma!ufacture" by the or#a!i=e" sector- the u!or#a!i=e" sector
.1

i! foothol" is i! the tra"itio!al areas of +rocesse" items li0e +ic0les- sauces a!" s;uashes. 8y si=e- +ic0les from the stro!#est cate#ory. No "oubt Dabur Real 7ruit Ruice is the mar0et lea"er follo.e" by Pe+si6s Tro+ica!a. The t.o ma,or fruit ,uice i! I!"ia- Tro+ica!a a!" Real are #oi!# all out to tease I!"ia! taste bu"s .ith eth!ic fla*ours. Go"re, i!"ustries 7oo" "i*isio! has i!tro"uce" fruit ,uices u!"er the Ts bra!"- .hich earlier o!ly co!sists of o!ly !ectars. Parle A#ro6s 7rooti a!" N3Roi too are "oi!# .ell i! the mar0et. Delhi3N/R base" Surya 7oo"s a!" A#ro 5t". Ma!ufacturers of Priya Gol" 8iscuits has foraye" i!to the ,uice se#me!t. Mother "airy has rece!tly lau!che" the Safal bra!" of ,uices. Safal is curre!tly a*ailable i! ora!#e- mi4e" fruit- #ra+e a!" a! ora!#e3a++le combi!atio!. 5a"a0h 7oo"s ma0ers of the 5eh 8erry seabuc0thor! berry "ri!0- has !o. lau!che" a! a++le3+each combi!atio! ,uice a!" a mi4e" fruit *aria!t. Ahme"aba"3base" Pioma I!"ustriesma0ers of Ras!a bra!" of soft "ri!0 co!ce!trates- test mar0et .ith a "ilute" ma!#o ,uice i! A!"hra Pra"esh rece!tly.

E&?. T3E G OWT3 5 !IT =!ICE MA KET

This cha!ce e!cou!ter .ith the .o!"er +la!t seabuc0thor! .as the reaso! 5a"a0h 7oo" .as set u+ as a se+arate com+a!y i! $%%$ to ma!ufacture a!" sell seabuc0thor! ,uice as 5eh8erry. 5a"a0h 7oo"s to"ay claims to be o!e of the fastest #ro.i!# fruit ,uice com+a!ies i! a fiercely com+etiti*e e!*iro!me!t .here bi# !ames such as Dabur a!" Pe+si alrea"y hol" substa!tial mar0et shares. E*e! .he! the fruit ,uice) !ectar mar0et is +ro,ecte" to #ro. at scorchi!# +ace of C%J- a Tetra Pa0 stu"y has fou!" that a .ho++i!# & J of the ,uice mar0et is still lyi!# u!ta++e". Perha+s o!e of the mai! reaso! .hy mil0 ma,or Mother Dairy a!!ou!ce" it is ,um+i!# o! to the ba!".a#o! of fruit ,uice. The com+a!y has lau!che" +ac0a#e" fruit ,uices u!"er its fla#shi+ bra!"- safal. Starti!# from Delhi- the +ro"uct is sche"ule" for lau!che" o! a !atio!.i"e scale i! the mo!ths to come. Prici!# is o!e of the ma,or .orries. Price is a barrier to this cate#ory because .he! you #i*e fresh ,uice- +ac0a#i!# becomes critical. So- .hat the i!"ustry is !o. tryi!# to "o is offer "iffere!t +ac0a#i!# to suit "iffere!t +rice +oi!t .hile simulta!eously .or0i!# o!

..

.ays to offer better ;uality a!" im+ro*e" taste. Prici!# is also the "o.!fall of fruit ,uice im+orters- .hich "istributes the Australia! 8ra!" 8erri i! the South- 9It is "ifficult to ma0e i!roa"s i!to the mi""le class as it fi!"s the +rices +rohibiti*e. Sales ta4 o! im+orte" +ro"ucts is !ot u!iform across the States. Ta0i!# a"*a!ta#e of the health co!scious!ess +er*a"i!# the mar0et- A"luri 7oo"s has i!tro"uce" cra!berry ,uice Esomethi!# that the local bra!"s also ha*e "o!eG a!" is testi!# a mi4e" *e#etable ,uice a!" coc0tail of a++le- carrot a!" ora!#e i! the mar0et. Pe+si rece!tly lau!che" Tro+ica!a Tro+ics Ma!#o Nectar- .hich ma"e e!tirely from ma!#oes source" from .ithi! I!"ia- as a#ai!st other fla*ors for .hich sourci!# has to be "o!e from other cou!tries. The i!tro"uctio! of Tro+ics Ma!#o Nectar .ill be follo.e" by Tro+ics 5itchi a!" Tro+ics Gua*a. I!"ia is !o. amo!# the to+ tee! mar0ets for Tro+ica!a .orl".i"e. Si#!ifica!tly I!"ia is !o. a! a++ro*e" source for ma!#o +ul+ .ithi! the Tro+ica!a .orl".i"e system- a!" ca! soo! emer#e as a ma,or sourci!# base for other e4otic fruits for Tro+ica!a6s i!ter!atio!al mar0et. 2hich mea!s that if the fruit ,uice +ro"ucers .or0 o! future "e*elo+me!t of bac0.ar" li!0a#es- the +rici!# issue +la#ui!# this i!"ustry ca! be better tac0le". 8esi"es- the i!"ustry has alrea"y be#u! to offer +ac0a#i!# solutio!s to a""ress "iffere!t +rice +oi!ts li0e a ($@ml +ac0 of fruit "ri!0 Maa=a from /oca3/ola I!"ia at ,ust Rs @ a!" @%% ml Tro+ica!a ble!" for Rs $@. 2ith the +eo+le tur!i!# more health co!scious- the !o! carbo!ate" be*era#e se#me!t has become o!e of the fastest #ro.i!# a!" most e4citi!# busi!esses at the mome!t. 7or some time !o.- ma!ufacturers ha*e e4+erime!te" .ith some of the formulatio! a!" taste issues- offeri!# the co!sumers better tasti!#- more healthful alter!ati*es. E*ol*i!# from "ri!0s co!tai!i!# a hi!t of herbs or *itami!s- be*era#es ha*e become a! im+orta!t "eli*ery *ehicle for efficacious amou!t of !utritio!al i!#re"ie!ts. 8e*era#es are u!usual +ro"ucts i! that e*eryo!e e4+ects to try !e. *arieties- e*e! from establishe" bra!"s. 2hile all se#me!ts of the be*era#e mar0et are e*ol*i!#- the #ro.th seems to be "irecte" more to.ar"s healthy- li#ht a!" lo.3calories "ri!0s- i! +articular or#a!ic a!" fruit ,uice *arieties.
.2

The Rs @%% crore !o!3carbo!ate" be*era#e mar0et i! the cou!try is com+ose" of fruit "ri!0s- !ectar a!" ,uices. 2hile the 7ruti "ri!0 se#me!t is estimate" at Rs $@%3 D%%crore Ebra!"e" a!" +ac0e"G- the ,uice mar0et is *alue" at Rs (@% crore a!" the !ectar is a small cate#ory of about Rs D@3@% crore. A!" the +o+ular bra!"s *yi!# for a share i! the sector are Parle6s 7rooti - Go"re,6s ,um+i!- /oca3 /ola6s Maa=a- Pe+si6s Tro+ica!a- a!" Dabur6s Real-a!" bra!"e" fruit ,uices from Surya 7oo"s E7resh #ol"Gamo!# others. The Rs (-(%% crore health foo" "ri!0s EH7DG mar0et- classifie" i!to t.o cate#ories of .hite a!" bro.! se#me!ts- has remai!e" sta#!a!t for the last se*eral years "es+ite GSK/H EGla4o Smith Kli!e /o!sumer HealthcareG a!" /a"bury6s attem+ts to acti*ate the cate#ory. Da*'rIs ea% 5r'(t ='(ce (n $ 5%a,ors Dabur6s fla#shi+ bra!" Real fruit ,uice is a mar0et lea"er i! the +ac0a#e" fruit ,uice cate#ory. Real .as lau!che" i! (AA a!" the bra!" has car*e" out !iche for itself by claimi!# to be the o!ly fruit ,uice i! +ac0a#e" form that is (%%J +reser*ati*e free. Real .ith a mar0et share of @@J offers its co!sumers the lar#est ra!#e of A ,uices that com+rise ora!#e- ma!#o- +i!ea++le- mi4e" fruit- #ra+e- #ua*a- tomato- litchi a!" cra!berry. Real Ru!ior- a*ailable i! ($@ ml +ac0s- tar#ets chil"re! belo. si4 years. It has t.o fa*orite fla*ors of ma!#o a!" a++le e!riche" .ith calcium. Real Acti*e- (%%J fruit ,uice .ith !o a""e" su#ar- #i*es the #oo"!ess of fruit .ithout a""i!# e4tra calories. To"ay it is a*ailable i! ora!#e- a++le- a!" ora!#e3carrot *aria!ts. Real Acti*e ora!#e carrot ,uice- I!"ia6s fist +ac0a#e" *e#etable ,uice- is a combi!atio! of ,uicy ora!#e a!" s.eet carrots. Dabur 7oo" +ro"ucers arou!" @% millio! liters of ,uice a!!ually throu#h its state3of3the3 art facility at 8ir#a!,- Ne+al. I! au#ust $%%C- the com+a!y commissio!e" a multi3fruit +rocessi!# facility i! Sili#uri- i! 2est 8e!#al- set u+ by Pasa"e!sa 7oo"s- a .holly o.!e" subsi"iary of Dabur 7oo"s 5t". S+rea" o*er (( acres a!" #eare" to +rocess (@% to!s of fruit +er "ay- it has the ca+acity to +ro"uce (A$ to!s of +ul+)co!ce!trate. The +la!t +rocures fruit .orth Rs crore from 2est 8e!#al- North3East- 8ihar- Uttar
.3

Pra"esh- Maharastra- a!" A!"hra Pra"esh. It has the hi#hest ca+acity utili=atio! by +rocessi!# +i!ea++le- litchi- #ua*a- ma!#o a!" #ra+e rou!" the year. Go1re+ >s 5r'(t ='(ce (s -ac0e& <(th eJtra tan1 an& eJtra .'n. Ts ra!#e of fruit !ectar has more fruit ma0i!# it thic0 a!" tasty. Also the *itami!s a!" carbohy"rates +rese!t i! it +ro*i"e e4tra e!er#y for fit a!" healthy li*i!#. A*ailable i! ora!#e- litchi- ma!#o- a!" +i!ea++le fla*ors- Ts comes i! tetra Pac0 of $%% ml a!" (%%%ml. Pe-s(Is Tro-(cana Pe+si6s Tro+ica!a bra!" fruit ,uice has re#istere" "ouble "i#it #ro.th a!" has out+ace" the #ro.th off the +ac0a#e" fruit ,uices mar0et i! I!"ia. I!"ia is a *ery im+orta!t mar0et for Tro+ica!a a!" is amo!# the to+ (% bi##est mar0ets for the bra!". The com+a!y sources ora!#e ,uice co!ce!trates from 8ra=il. Tro+ica!a is a*ailable i! ora!#e- a++le#ra+e a!" cra!berry fla*ors a!" a coc0tail i! Ruby re". They come i! Tetra +ac0s of o!e liter a!" PET bottles of @%% ml a!" o!e liter.

Ee?. 5 !IT =!ICE2 GO LOCAL

The t.o ma,or fruit ,uice ma0ers i! I!"ia Tro+ica!a a!" Dabur are #oi!# all out to tease I!"ia! taste bu"s .ith eth!ic fla*ors. Pe+si/o terms these as fla*ors that are more rele*a!t to I!"ia!s. 7or Tro+ica!a I!"ia is +ro*i"i!# to be a #oo" i!*estme!t as accor"i!# to to+ officials i! the com+a!y- 9I!"ia is amo!# Tro+ica!a6s to+ te! mar0ets .hich is co!ti!uously mo*i!# u+ ha*i!# re#istere" a sto!# "ouble "i#it #ro.th last year:. 8ut they "i" !ot re*eal a!y !umber. The com+a!y .a!ts to e!sure that the stro!# #ro.th co!ti!ues a!" also that the mar0et e4+a!"s further. To this e!" Tro+ica!a has lau!che" a sub3bra!" Tro+ica!a Tro+ics a!" is i!tro"uci!# !e. fla*ors ma!#o !ectar- #ua*a +ul+ a!" litchi ,uice u!"er this bra!". It may be recalle" that Pe+si ha" lau!che" ma!#o a!" litchi fla*or earlier u!"er its fruit "ri!0 bra!" MSlice6 i! retur!able #lass bottles.

.4

The !e. *aria!t are e4+ecte" to come for arou!" Rs @% +er liter as these come u!"er the cate#ory of Mless tha! $% J fruit +ul+6 ma0i!# them less +ricy tha! Tro+ica!a fruit ,uices all of .hich retail at abo*e Rs O% +er liter. Tro+ica!a ,uices ha*e &% +erce!t fruit +ul+ co!te!t. At +rese!t Tro+ica!a ha*e about se*e! fla*ors i! the mar0et ' a++le- +i!ea++leora!#e- a++le ora!#e- #ra+e a!" mi4 fruit. Tro+ica!a is also loo0i!# at ma0i!# I!"ia the sourci!# hub for certai! *arieties of fruits mai!ly ma!#o. Pe+si is alrea"y e4+orti!# !early $%-%%% to!s of ma!#o +ul+ a!" co!ce!trate +re"omi!a!tly to .est Asia a!" Euro+e from I!"ia. The com+a!y is !o. .or0i!# o! buil"i!# the same ca+acities for other fruits li0e #ua*a- +i!ea++le- +a+aya +ul+- #ra+es- a!" +ome#ra!ate. Pe+si/o teame" u+ .ith Pu!,ab- .hich is e4+ecte" to start +ro"uci!# results *ery soo!. The com+a!y is !o. loo0i!# for a similar "eal .ith +i!ea++le farmers i! Kerala. Accor"i!# to Pe+si/o I!"ia s+o0es+erso!- the com+a!y has be#u! trials of +i!ea++les im+orte" from Thaila!" a!" the Phili++i!es i! Kerala. At +rese!t the com+a!y sources or#a!ic ,uice co!ce!trates from 8ra=il but throu#h the o!#oi!# +ro,ect- it is tryi!# to "e*elo+ a lar#e #ro.er base- .hich ca! +ro"uce hi#h ,uice yiel"i!# ora!#es to match its re;uireme!ts. 9I!"ia +ro"uces CO millio! to!s of fruits .hich +ro*i"es us as e4citi!# e4+ort o++ortu!ity .ithi! the Asia Pacific re#io!:. Dabur 7oo"s is also #oi!# local .ith a *e!#ea!ce .ith its fruit ,uices. It is also aimi!# to e4+a!" its mar0et by i!tro"uci!# ,uices .ith a lo.er +rice ta#. The com+a!y has lau!che" a !e. bra!" M/oolers6 i! four *aria!ts ' #ree! ma!#o- +ome#ra!ate- ,amu!a!" .ater melo! .ith o!e liter of /ooler +rice" at Rs @%. /oolers li0e Tro+ica!a Tro+ics also co!tai! o!ly $% J of fruit +ul+ a#ai!st o*er &%J of Real *aria!ts. Dabur is also aimi!# at e4+a!"i!# its co!sumer base. Dabur6s Real bra!" of fruit ,uices has +ro*e" *ery successful co!tributi!# as much as &@J to the com+a!y6s Rs &@ crore tur!o*er last fiscal. Accor"i!# to the com+a!y /oolers has bee! lau!che" of Rs ($ crore- i!to research i!to co!sumer !ee"s a!" "e*elo+me!t of +rocessi!# ca+abilities a!" +arameters o! the other.

E.?. 5ACTO

A55ECTING DEMAND

A. POP!LATION
.5

Po+ulatio! #ro.th i! I!"ia is curre!tly $ +er ce!t +er year a!" *aries from state to state. The states .ith the hi#hest +er ca+ut fruit co!sum+tio! are usually those .ith lo.er +o+ulatio! #ro.th rates. Accor"i!# to official statistics- +o+ulatio! #ro.th is e4+ecte" to "ecli!e to (.@ J +er year by $%(( .he! the total +o+ulatio! of I!"ia is e4+ecte" to (.$ billio!. Si#!ifica!t +ote!tial e4ists to e4+a!" fruit co!sum+tio! i! rural areasH states .ith curre!tly lo. +er ca+ita co!sum+tio! are i!creasi!#ly e*i"e!t i! urba! areas- for *irtually all i!come #rou+s .ith the hi#her i!come le*els sho.i!# the hi#hest +er3ca+ita co!sum+tio! rates. A. INCOME AND P ICE2 THE I!"ia! eco!omy has achie*e" si#!ifica!t #ro.th o*er the +ast $% years. Real a!!ual GDP #ro.th rates ha*e a*era#e" C.O +er ce!t o*er a +erio"- "es+ite the Asia! eco!omy crisis a!" slo. i!"ustrial #ro.th i! +ast fi*e years. Real +er ca+ut i!come le*els i!crease" D.C +er ce!t +er year from (A&( to (AA&- .ith househol" e4+e!"iture for fruits a!" *e#etables estimate" to ha*e i!crease" @ +er ce!t +er year o*er the same +erio". A!!ual +er ca+ut fruit co!sum+tio! also i!crease" from $@ K#s i! (A&( to D( K#s i! (AA&. There is a si#!ifica!t +ositi*e relatio!shi+ bet.ee! i!come a!" fruit co!sum+tio!. The co!sum+tio! of Tro+ical a!" other fruits is hi#hly relate" to i!come le*els. Data from the I!"ia! A#riculture Research I!stitute i!"icate that the richest i!come #rou+ co!sumes si4 times more fruit tha! the lo.est i!come #rou+s- i! both rural a!" urba! areas- .ith +er ca+ut co!sum+tio! i! urba! areas almost t.ice that of rural areas. Lr rural areas- the o*erall .ei#hte" a*era#e of the i!come elasticity of fruit "ema!" for the hi#hest i!come #rou+ .as estimate" at %.$&D com+are" to %.&$ for the lo.est i!come le*els. Similarly for urba! areas- the i!come elasticites .ere %.$AD a!" %.O&$ res+ecti*ely. Thus- the hi#hest the i!come the less the res+o!si*e is fruit co!sum+tio! to cha!#es i! i!come le*els. Gi*e! this relatio!shi+ bet.ee! i!come a!" "ema!"lo.er i!come #rou+s are li0ely to accou!t for most of the future #ro.th of the mar0et i! I!"ia- althou#h hi#h i!come #rou+s may i!creasi!#ly substitute tro+ical fruit for other fresh fruits as fruit co!sum+tio! i! these #rou+s a++roaches saturatio!.

.7

Prices of fruit ha*e i!crease" more tha! the Ge!eral Price I!"e4 .ith total fruit co!sum+tio! #e!erally hi#hly se!siti*e to +rice cha!#es- as "iscusse" abo*e. A substa!tial +rice "iffere!tial e4it bet.ee! .holesale a!" retail +rices as sho.! by table (% +rimarily "ue to the mar#i!s ca+ture" by i!terme"iate buyers a!" sellers- +erish ability of +ro"uct- a!" lo!# "ista!ces bet.ee! .holesale a!" retail mar0ets. Hi#h retail +rices for fresh tro+ical fruit are o!e of the +rimary co!strai!ts to i!creasi!# co!sum+tio!- +articularly amo!# mi""le to lo. i!come househol"s. C. CON2!MPTION 3AAIT2 AND P E5E ENCE2 /o!sumers i! I!"ia ha*e become i!creasi!#ly a.are of the +ositi*e health as+ects of fruit co!sum+tio!- +articularly i! urba! areas. A mre "i*ersifie" "iet a!" i!terest i! healthier eati!# has le" to i!crease" co!sum+tio! of all fruits. Prices also +lay a! im+orta!t role i! co!sumer +refere!ces for i!"i*i"ual fruits- .ith tro+ical fruit +rices ty+ically lo.er tha! for tem+erate fruit. Tem+erate fruits te!" to be co!sume" by the hi#her i!come #rou+sH .hile tro+ical fruit co!sum+tio! is more .i"e s+rea". 5ar#e ;ua!tities of fresh u!ri+e ma!#oes are utili=e" i! househol" +re+aratio! of +ic0les a!" chut!eys. The mar0et for mi!or tro+ical fruits- such as +assio! fruit- carambola a!" a*oca"o is e4+ecte" to ra+i"ly i!crease o*er the !ear to mi"3term- .ith co!sum+tio! co!ce!trate" i! hi#her i!come #rou+s at the +rese!t time. D. P OMOTIONAL ACTIBITIE2 7e. !atio!al or re#io!al +romotio!al acti*ities- either commercial or state3s+o!sore"ha*e bee! "e*elo+e" to e!coura#e "omestic co!sum+tio! of tro+ical or other fruits i! +ast years. Ho.e*er- !utritio!al e"ucatio! +ro#rammes by the #o*er!me!t of I!"ia ha*e resulte" i! risi!# "ema!" for hi#her ;uality fruit- as .ell as i!crease" +refere!ces for more *arie" "iets Ei!clu"i!# more fruit co!sum+tio!G. A !umber of lar#e a#ro3 +rocessi!# i!"ustries ha*e i!itiate" +romotio!al +ro#rammes for +rocesse" fruit a!" ,uice +ro"ucts i! rece!t years- utili=i!# mass me"ia a!" i!3store +romotio!s to e!ha!ce bra!" reco#!itio! a!" e!coura#e co!sum+tio!. E. 2EA2ONALIT4

.8

A sur*ey of three .holesale termi!al mar0ets i! Lctober (AAA re*eale" lar#e *ariatio!s i! +rice "ue to seaso!ality. 7urthermore- "es+ite some efforts to better ma!a#e sur+luses "ue to seaso!ality- a! estimate" $@ J of total fruit +ro"uctio! #oes to .aste "uri!# +ost3 har*est ha!"li!#- accor"i!# to Natio!al Horticulture 8oar" of the Mi!istry of A#riculture for I!"ia. Althou#h the Go*er!me!t of I!"ia has ta0e! ste+s to im+ro*e the o*erall co!"itio!s of the fruit i!"ustry- future #ro.th is co!strai!e" "ue to i!a"e;uate refri#eratio! a!" cooli!# facilities- remote mar0et access a!" e4+ort i!frastructure !ot meeti!# the "ema!" re;uireme!ts for e4+ort of fresh fruits.

E1?. CON2!ME 2 P! C3A2ING AE3ABIO!

The a*ailability of co!sumer foo" +ro"ucts i! I!"ia has #ro.! si#!ifica!tly si!ce the eco!omic reforms be#i!!i!# i! (AA(. I!"ia! co!sumers ca! !o. +urchase "omestically +ro"uce" cheese- .i!e- +otato chi+s- 0etchu+- soft "ri!0s- ca!"y barsbrea0fast cereals- ice cream- "o!uts- biscuits- fro=e! meats a!" *e#etables- i!sta!t !oo"les- ,ams a!" ,ellies- +ac0a#e" #rai!s a!" +ulses- sou+s a!" some rea"y to eat +ac0a#e" a!" fro=e! meals. A*ailability of fresh +ro"uce is seaso!al. Retail foo" sales i! I!"ia .ere a++ro4imately B(D$ billio! i! fiscal year (AA& a!" are #ro.i!# at (DJ +er year- accor"i!# to the Mi!istry of 7i!a!ce. The retail mar0et for fruits a!" *e#etables has #ro.! at o*er $%J +er year i! the +ast fe. years. Retail sales of subsiste!ce foo"s such as cereals- brea"s- +ulses- a!" e"ible oils ha*e starte" "ecli!i!#. As i!comes ha*e rise!- there has bee! a shift i! co!sum+tio!- from subsiste!ce to hi#her *alue foo"s. Ma!y I!"ia!s are *e#etaria! by tra"itio!H moreo*er- ma!y ca! o!ly affor" a

*e#etaria! "iet. Meast may be re#ularly co!sume" by less tha! D% J of the I!"ia! +o+ulatio!- "ue to its hi#her cost a!" +re"omi!a!ce of *e#etaria!ism a!" Hi!"uism. Ho.e*er- o!ly $%J of the +o+ulatio! is strictly *e#etaria!. No! *e#etaria!s ty+ically co!sume meat o!ly o!ce or t.ice a .ee0. Hi#her i!come co!sumers rely almost e!tirely o! "omestic hel+ for their sho++i!#. The "omestic hel+ buys sta+les*e#etables- a!" fresh foo"s from local small #rocers a!" *e!"ors- a!" other +ro"ucts from a *ariety of #e!eral mercha!ts. The mi""le class has "i*erse +urchasi!# habits.
.6

Ma!y families o! the u++er e!" use +art3time "omestic hel+ to "o their

sho++i!#-

ofte! !ecessitate" by #ro.i!# +atter! of househol" .ith t.o .or0i!# +are!ts. Ma!y families at the lo.er e!" of the mi""le class co!ti!ue to "o their o.! sho++i!#. The +oorer se#me!ts of the I!"ia! +o+ulatio! te!" to buy basic sta+le .ith the first +art of their +aychec0s- .hich ty+ically are "istribute" o! the first fe. "ays of each mo!th. Duri!# the mo!th- the +oorer customers .ill buy .hate*er fresh foo"s a!" co!sumer #oo"s they ca! affor"- ofte! filli!# i! at the e!" of the mo!th .ith some a""itio!al sta+les +urchase" o! cre"it. I! all classes- .ome! "o most of the sho++i!# a!" ma0e most of the foo" +urchase "ecisio!. Most co!sumers +refer local sho+s to lar#er su+ermar0ets because of +ro4imity- +erso!al atte!tio! a!" lo.er +rices. Nearly A@J of co!sumers +urchase fresh fruits a!" *e#etables from a local mar0et or street *e!"or. A""itio!ally- tra"itio!al mar0ets are co!si"ere" the freshest source for foo"s.

Eh?. O!TE

5AA IC ATT ACT2 CON2!ME 2

As co!sumer +refere!ces i! the cou!try are shifti!# to.ar"s healthy- !atural foo" +ro"ucts- the "ema!" for !o!3carbo!ate" soft "ri!0 is accelerati!#. I! the face of i!creasi!# com+etitio!- com+a!ies are re"esi#!i!# the +ac0a#es that they offer their +ro"uct i!. at the same time- safety- lo!# shelf life- co!*e!ie!ce a!" eco!omic *iability are im+orta!t co!si"eratio!s .hile choosi!# +ac0a#i!# o+tio!s. 2hat are the i!ter!atio!al tre!"s i! the +ac0a#i!# of fruit ,uicesU /a! a!y o!e of these tre!"s be re+licate" i! I!"iaU I!ter!atio!ally a *ariety of +ac0a#i!# formats are bei!# use" for +ac0a#i!# fruit ,uices. L!e of the most +o+ular is ase+tic carto!s. This is the most +o+ular format i! the or#a!i=e" ,uice mar0et i! I!"ia accou!ti!# for o*er %J of the mar0et. The rece!t e!try of Mother Dairy i!to the se#me!t +oi!ts to the #ro.i!# +o+ularity of this +ac0a#i!# format. More tha! a!ythi!# else the e!tire ase+tic +rocessi!# a!" +ac0a#i!# system e!sures the a*ailability of !utritious +ro"ucts i! safe a!" hy#ie!ic formats- .hich are also co!*e!ie!t to use. A loo0 at a!y mar0et i! Asia .ill sho. ho. ase+tic +ac0a#i!# is #ro.i!# i! +o+ularity.

20

The i!crease i! "ema!" for fruit ,uices i! the rece!t years- a!" the #ro.th i! their +ro"uctio! is i!e*itably lea"i!# to a! i!crease i! "ema!" for +ac0a#i!# o+tio!s i! I!"ia. 2hat are the tech!olo#ical i!!o*atio!s that ha*e bee! i!tro"uce" i! the sector to cater to the i!creasi!# "ema!"U The i!crease" "ema!" has le" to a! i!crease i! !umber of si=e- sha+es a!" e*e! +ri!ti!# tech!olo#y i!!o*atio!s- besi"es the ob*ious o!e of e!suri!# im+ro*e" +ro"ucttaste- ;uality. Ma!ufacturers are #etti!# more a##ressi*e by offeri!# !e. +ro"uct to co!sumers. /oul" you elaborate o! the s+i!3ca+ a!" col" fill tech!olo#y ' +ac0a#i!# o+tio!s are relate" tech!olo#ies that Tetra Pac0 has rece!tly i!tro"uce" for +ac0a#i!# fruit ,uice. 2hich com+a!ies are usi!# these tech!olo#ies a!" .hat are their be!efits U 2hat other tech!olo#ies ha*e bee! i!tro"uce" rece!tly for +ac0a#i!# fruit ,uices U The s+i! ca+ is a +ac0 o+e!i!# o+tio! that .as i!tro"uce" a cou+le of year a#o. Use" the .orl" o*er- it is curre!tly bei!# use" o!ly by Dabur i! I!"ia. Tro+ica!a a!" Mother Dairy both use the reca+ o+tio!. /ol" fill tech!olo#y6s bi##est be!efit is that it e!sures microbiolo#ical safety a!" a bacteria free +ro"uct .hile 0ee+i!# the !utritio!al *alues i!tact throu#h the use of a #e!tle heat treatme!t +rocess .hich retai!s ori#i!al state of the +ro"uct a!" e!sures that the co!sumer #ets *alue3for3mo!ey. Slim li!e +ac0a#i!# for fruit ,uices a!" its be!efits o*er baseli!e +ac0a#i!#3 The "iffere!ce bet.ee! the t.o is the aesthetics. There is !o "iffere!ce i! the tech!olo#y use" i! both these o+tio!s. 7or both the ma!ufacturer a!" retailer- slim li!e +ac0a#i!# is easier to ha!"le i! the "istributio! chai!. It also #i*es the ma!ufacturer more surface area for #ra+hics.

1./ Mar0et(n1

esearch

Mar0eti!# research is a form of busi!ess research a!" is #e!erally "i*i"e" i!to t.o cate#ories1 co!sumer mar0et research a!" busi!ess3to3busi!ess E8$8G mar0et
21

research- .hich .as +re*iously 0!o.! as i!"ustrial mar0eti!# research. /o!sumer mar0eti!# research stu"ies the buyi!# habits of i!"i*i"ual +eo+le .hile busi!ess3to3 busi!ess mar0eti!# research i!*esti#ates the mar0ets for +ro"ucts sol" by o!e busi!ess to a!other. /o!sumer mar0et research is a form of a++lie" sociolo#y that co!ce!trates o! u!"ersta!"i!# the beha*iours- .hims a!" +refere!ces- of co!sumers i! a mar0et3 base" eco!omy- a!" aims to u!"ersta!" the effects a!" com+arati*e success of mar0eti!# cam+ai#!s. The fiel" of co!sumer mar0eti!# research as a statistical scie!ce .as +io!eere" by Arthur Nielse! .ith the fou!"i!# of the A/Nielse! /om+a!y i! (A$D. Thus mar0et(n1 research is the systematic a!" ob,ecti*e i"e!tificatio!- collectio!a!alysis- a!" "issemi!atio! of i!formatio! for the +ur+ose of assisti!# ma!a#eme!t i! "ecisio! ma0i!# relate" to the i"e!tificatio! a!" solutio! of +roblems a!" o++ortu!ities i! mar0eti!#. The #oal of mar0eti!# research is to i"e!tify a!" assess ho. cha!#i!# eleme!ts of the mar0eti!# mi4 im+acts customer beha*ior.

o%e o. mar0et(n1 research

Tra"itio!ally- mar0eti!# researchers .ere res+o!sible for +ro*i"i!# the rele*a!t i!formatio! a!" mar0eti!# "ecisio!s .ere ma"e by the ma!a#ers. Ho.e*er- the roles are cha!#i!# a!" mar0eti!# researchers are becomi!# more i!*ol*e" i! "ecisio! ma0i!#- .hereas mar0eti!# ma!a#ers are becomi!# more i!*ol*e" .ith research. The role of mar0eti!# research i! ma!a#erial "ecisio! ma0i!# is e4+lai!e" further usi!# the frame.or0 of the DE/IDE mo"el1 D I3 Defi!e the mar0eti!# +roblem E I3 E!umerate the co!trollable a!" u!co!trollable "ecisio! factors C I3 /ollect rele*a!t i!formatio! I I3 I"e!tify the best alter!ati*e D I3 De*elo+ a!" im+leme!t a mar0eti!# +la!
2.

E I3 E*aluate the "ecisio! a!" the "ecisio! +rocess The DECIDE model co!ce+tuali=es ma!a#erial "ecisio! ma0i!# as a series of si4 ste+s. The "ecisio! +rocess be#i!s by +recisely "efi!i!# the +roblem or o++ortu!ityalo!# .ith the ob,ecti*es a!" co!strai!ts. Ne4t- the +ossible "ecisio! factors that ma0e u+ the alter!ati*e courses of actio! Eco!trollable factorsG a!" u!certai!ties Eu!co!trollable factorsG are e!umerate". The!- rele*a!t i!formatio! o! the alter!ati*es a!" +ossible outcomes is collecte". The !e4t ste+ is to select the best alter!ati*e base" o! chose! criteria or measures of success. The! a "etaile" +la! to im+leme!t the alter!ati*e selecte" is "e*elo+e" a!" +ut i!to effect. 5ast- the outcome of the "ecisio! a!" the "ecisio! +rocess itself are e*aluate".

TPPES

L7 MARKETING RESEAR/H

Mar0eti!# research tech!i;ues come i! ma!y forms- i!clu"i!#1

A& Trac0(n1 ' +erio"ic or co!ti!uous i!3mar0et research to mo!itor a bra!"6s +erforma!ce usi!# measures such as bra!" a.are!ess- bra!" +refere!ce- a!" +ro"uct usa#e. EPou!#- $%%@G

A&,ert(s(n1

esearch ' use" to +re"ict co+y testi!# or trac0 the efficacy of

a"*ertiseme!ts for a!y me"ium- measure" by the a"6s ability to #et atte!tio!commu!icate the messa#e- buil" the bra!"6s ima#e- a!" moti*ate the co!sumer to +urchase the +ro"uct or ser*ice. EPou!#- $%%@G

Aran& eK'(ty research 3 ho. fa*orably "o co!sumers *ie. the bra!"U Aran& assoc(at(on research 3 .hat "o co!sumers associate .ith the bra!"U Aran& attr(*'te research 3 .hat are the 0ey traits that "escribe the bra!" +romiseU

Aran& name test(n1 3 .hat "o co!sumers feel about the !ames of the +ro"uctsU

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Commerc(a% eye trac0(n1 research 3 e4ami!e a"*ertiseme!ts- +ac0a#e "esi#!s- .ebsites- etc by a!aly=i!# *isual beha*ior of the co!sumer

Conce-t test(n1 3 to test the acce+ta!ce of a co!ce+t by tar#et co!sumers Coo%h'nt(n1 3 to ma0e obser*atio!s a!" +re"ictio!s i! cha!#es of !e. or e4isti!# cultural tre!"s i! areas such as fashio!- music- films- tele*isio!- youth culture a!" lifestyle

A'yer &ec(s(on -rocesses research 3 to "etermi!e .hat moti*ates +eo+le to buy a!" .hat "ecisio!3ma0i!# +rocess they use

Co-y test(n1 ' +re"icts i!3mar0et +erforma!ce of a! a" before it airs by a!aly=i!# au"ie!ce le*els of atte!tio!- bra!" li!0a#e- moti*atio!- e!tertai!me!ta!" commu!icatio!- as .ell as brea0i!# "o.! the a"6s flo. of atte!tio! a!" flo. of emotio!. EPou!#- + $(DG

C'stomer sat(s.act(on research 3 ;ua!titati*e or ;ualitati*e stu"ies that yiel"s a! u!"ersta!"i!# of a customer<s of satisfactio! .ith a tra!sactio!

Deman& est(mat(on 3 to "etermi!e the a++ro4imate le*el of "ema!" for the +ro"uct

D(str(*'t(on channe% a'&(ts 3 to assess "istributors6 a!" retailers6 attitu"es to.ar" a +ro"uct- bra!"- or com+a!y

Internet strate1(c (nte%%(1ence 3 searchi!# for customer o+i!io!s i! the I!ter!et1 chats- forums- .eb +a#es- blo#s... .here +eo+le e4+ress freely about their e4+erie!ces .ith +ro"ucts- becomi!# stro!# Vo+i!io! formersV

Mar0et(n1 e..ect(,eness an& ana%yt(cs 3 8uil"i!# mo"els a!" measuri!# results to "etermi!e the effecti*e!ess of i!"i*i"ual mar0eti!# acti*ities.

Mystery Cons'mer or Mystery sho--(n1 3 A! em+loyee or re+rese!tati*e of the mar0et research firm a!o!ymously co!tacts a sales+erso! a!" i!"icates he
23

or she is sho++i!# for a +ro"uct. The sho++er the! recor"s the e!tire e4+erie!ce. This metho" is ofte! use" for ;uality co!trol or for researchi!# com+etitors< +ro"ucts.

Pos(t(on(n1 research 3 ho. "oes the tar#et mar0et see the bra!" relati*e to com+etitorsU 3 .hat "oes the bra!" sta!" forU

Pr(ce e%ast(c(ty test(n1 3 to "etermi!e ho. se!siti*e customers are to +rice cha!#es

2a%es .orecast(n1 3 to "etermi!e the e4+ecte" le*el of sales #i*e! the le*el of "ema!". 2ith res+ect to other factors li0e A"*ertisi!# e4+e!"iture- sales +romotio! etc.

2e1mentat(on research 3 to "etermi!e the "emo#ra+hic- +sycho#ra+hic- a!" beha*ioural characteristics of +ote!tial buyers

On%(ne -ane% 3 a #rou+ of i!"i*i"ual .ho acce+te" to res+o!" to mar0eti!# research o!li!e

2tore a'&(t 3 to measure the sales of a +ro"uct or +ro"uct li!e at a statistically selecte" store sam+le i! or"er to "etermi!e mar0et share- or to "etermi!e .hether a retail store +ro*i"es a"e;uate ser*ice

Test mar0et(n1 3 a small3scale +ro"uct lau!ch use" to "etermi!e the li0ely acce+ta!ce of the +ro"uct .he! it is i!tro"uce" i!to a .i"er mar0et

B(ra% Mar0et(n1

esearch 3 refers to mar0eti!# research "esi#!e" to estimate

the +robability that s+ecific commu!icatio!s .ill be tra!smitte" throu#hout a! i!"i*i"uals Social Net.or0. Estimates of Social Net.or0i!# Pote!tial ESNPG are combi!e" .ith estimates of selli!# effecti*e!ess to estimate RLI o! s+ecific combi!atio!s of messa#es a!" me"ia.

All of these forms of mar0eti!# research ca! be classifie" as either problemidentification research or as problem-solving research.
24

A com+a!y collects +rimary research by #atheri!# ori#i!al "ata. Seco!"ary research is co!"ucte" o! "ata +ublishe" +re*iously a!" usually by someo!e else. Seco!"ary research costs far less tha! +rimary research- but sel"om comes i! a form that e4actly meets the !ee"s of the researcher.

A similar "isti!ctio! e4ists bet.ee! exploratory research a!" conclusive research. E4+loratory research +ro*i"es i!si#hts i!to a!" com+rehe!sio! of a! issue or situatio!. It shoul" "ra. "efi!iti*e co!clusio!s o!ly .ith e4treme cautio!. /o!clusi*e research "ra.s co!clusio!s1 the results of the stu"y ca! be #e!erali=e" to the .hole +o+ulatio!.

E4+loratory research is co!"ucte" to e4+lore a +roblem to #et some basic i"ea about the solutio! at the +relimi!ary sta#es of research. It may ser*e as the i!+ut to co!clusi*e research. E4+loratory research i!formatio! is collecte" by focus #rou+ i!ter*ie.s- re*ie.i!# literature or boo0s- "iscussi!# .ith e4+ertsetc. This is u!structure" a!" ;ualitati*e i! !ature. If a seco!"ary source of "ata is u!able to ser*e the +ur+ose- a co!*e!ie!ce sam+le of small si=e ca! be collecte". /o!clusi*e research is co!"ucte" to "ra. some co!clusio! about the +roblem. It is esse!tially- structure" a!" ;ua!titati*e research- a!" the out+ut of this research is the i!+ut to ma!a#eme!t i!formatio! systems EMISG.

E4+loratory research is also co!"ucte" to sim+lify the fi!"i!#s of the co!clusi*e or "escri+ti*e research- if the fi!"i!#s are *ery har" to i!ter+ret for the mar0eti!# ma!a#ers.

The .(,e *as(c metho& o. mar0et(n1 research

2hile there are ma!y .ays to +erform mar0et research- most busi!esses use o!e or more of fi*e basic metho"s1 sur*eys- focus #rou+s- +erso!al i!ter*ie.s- obser*atio!a!" fiel" trials. The ty+e of "ata you !ee" a!" ho. much mo!ey you6re .illi!# to s+e!" .ill "etermi!e .hich tech!i;ues you choose for your busi!ess.

25

1. 2'r,eys. 2ith co!cise a!" strai#htfor.ar" ;uestio!!aires- you ca! a!aly=e a sam+le #rou+ that re+rese!ts your tar#et mar0et. The lar#er the sam+le- the more reliable your results .ill be.

I!3+erso! sur*eys are o!e3o!3o!e i!ter*ie.s ty+ically co!"ucte" i! hi#h3traffic locatio!s such as sho++i!# malls. They allo. you to +rese!t +eo+le .ith sam+les of +ro"ucts- +ac0a#i!#- or a"*ertisi!# a!" #ather imme"iate fee"bac0. I!3+erso! sur*eys ca! #e!erate res+o!se rates of more tha! A% +erce!t- but they are costly. 2ith the time a!" labor i!*ol*e"- the tab for a! i!3+erso! sur*ey ca! ru! as hi#h as B(%% +er i!ter*ie..

Tele+ho!e sur*eys are less e4+e!si*e tha! i!3+erso! sur*eys- but costlier tha! mail. Ho.e*er- "ue to co!sumer resista!ce to rele!tless telemar0eti!#- co!*i!ci!# +eo+le to +artici+ate i! +ho!e sur*eys has #ro.! i!creasi!#ly "ifficult. Tele+ho!e sur*eys #e!erally yiel" res+o!se rates of @% to % +erce!t.

Mail sur*eys are a relati*ely i!e4+e!si*e .ay to reach a broa" au"ie!ce. They<re much chea+er tha! i!3+erso! a!" +ho!e sur*eys- but they o!ly #e!erate res+o!se rates of D +erce!t to (@ +erce!t. Des+ite the lo. retur!- mail sur*eys remai! a cost3effecti*e choice for small busi!esses.

L!li!e sur*eys usually #e!erate u!+re"ictable res+o!se rates a!" u!reliable "ata- because you ha*e !o co!trol o*er the +ool of res+o!"e!ts. 8ut a! o!li!e sur*ey is a sim+le- i!e4+e!si*e .ay to collect a!ec"otal e*i"e!ce a!" #ather customer o+i!io!s a!" +refere!ces.

). 5oc's 1ro'-s. I! focus #rou+s- a mo"erator uses a scri+te" series of ;uestio!s or to+ics to lea" a "iscussio! amo!# a #rou+ of +eo+le. These sessio!s ta0e +lace at !eutral locatio!s- usually at facilities .ith *i"eota+i!# e;ui+me!t a!" a! obser*atio! room .ith o!e3.ay mirrors. A focus #rou+ usually lasts o!e to t.o hours- a!" it ta0es at least three #rou+s to #et bala!ce" results. #. Persona% (nter,(e<s. 5i0e focus #rou+s- +erso!al i!ter*ie.s i!clu"e u!structure"o+e!3e!"e" ;uestio!s. They usually last for about a! hour a!" are ty+ically recor"e".

27

7ocus #rou+s a!" +erso!al i!ter*ie.s +ro*i"e more sub,ecti*e "ata tha! sur*eys. The results are !ot statistically reliable- .hich mea!s that they usually "o!<t re+rese!t a lar#e e!ou#h se#me!t of the +o+ulatio!. Ne*ertheless- focus #rou+s a!" i!ter*ie.s yiel" *aluable i!si#hts i!to customer attitu"es a!" are e4celle!t .ays to u!co*er issues relate" to !e. +ro"ucts or ser*ice "e*elo+me!t. /. O*ser,at(on. I!"i*i"ual res+o!ses to sur*eys a!" focus #rou+s are sometimes at o""s .ith +eo+le<s actual beha*ior. 2he! you obser*e co!sumers i! actio! by *i"eota+i!# them i! stores- at .or0- or at home- you ca! obser*e ho. they buy or use a +ro"uct. This #i*es you a more accurate +icture of customers< usa#e habits a!" sho++i!# +atter!s. :. 5(e%& tr(a%s. Placi!# a !e. +ro"uct i! selecte" stores to test customer res+o!se u!"er real3life selli!# co!"itio!s ca! hel+ you ma0e +ro"uct mo"ificatio!s- a",ust +rices- or im+ro*e +ac0a#i!#. Small busi!ess o.!ers shoul" try to establish ra++ort .ith local store o.!ers a!" 2eb sites that ca! hel+ them test their +ro"ucts.

A's(ness to *'s(ness mar0et research

8usi!ess to busi!ess E8$8G research is i!e*itably more com+licate" tha! co!sumer research. The researchers !ee" to 0!o. .hat ty+e of multi3facete" a++roach .ill a!s.er the ob,ecti*es- si!ce sel"om is it +ossible to fi!" the a!s.ers usi!# ,ust o!e metho". 7i!"i!# the ri#ht res+o!"e!ts is crucial i! 8$8 research si!ce they are ofte! busy- a!" may !ot .a!t to +artici+ate. E!coura#i!# them to 9o+e! u+: is yet a!other s0ill re;uire" of the 8$8 researcher. 5ast- but !ot least- most busi!ess research lea"s to strate#ic "ecisio!s a!" this mea!s that the busi!ess researcher must ha*e e4+ertise i! "e*elo+i!# strate#ies that are stro!#ly roote" i! the research fi!"i!#s a!" acce+table to the clie!t. There are four 0ey factors that ma0e 8$8 mar0et research s+ecial a!" "iffere!t to co!sumer mar0ets.

The "ecisio! ma0i!# u!it is far more com+le4 i! 8$8 mar0ets tha! i! co!sumer mar0ets 8$8 +ro"ucts a!" their a++licatio!s are more com+le4 tha! co!sumer +ro"ucts
28

8$8 mar0eters a""ress a much smaller !umber of customers .ho are *ery much lar#er i! their co!sum+tio! of +ro"ucts tha! is the case i! co!sumer mar0ets

Perso!al relatio!shi+s are of critical im+orta!ce i! 8$8 mar0ets.

Internat(ona% Mar0et(n1

esearch

I!ter!atio!al Mar0eti!# Research follo.s the same +ath as "omestic research- but there are a fe. more +roblems that may arise. /ustomers i! i!ter!atio!al mar0ets may ha*e *ery "iffere!t customs- cultures- a!" e4+ectatio!s from the same com+a!y. I! this case- seco!"ary i!formatio! must be collecte" from each se+arate cou!try a!" the! combi!e"- or com+are". This is time co!sumi!# a!" ca! be co!fusi!#. I!ter!atio!al Mar0eti!# Research relies more o! +rimary "ata rather tha! seco!"ary i!formatio!. Gatheri!# the +rimary "ata ca! be hi!"ere" by la!#ua#e- literacy a!" access to tech!olo#y.

26

).

E2EA C3 MET3ODOLOG4

The research metho"olo#y base" o! the +rimary a!" seco!"ary "ata both. Seco!"ary "ata are collecte" from "iffere!t seco!"ary sources of i!formatio!.
30

Primary "ata .ere collecte" by me at "iffere!t +laces of In&(ra-'ram EGha=iaba"? a!" No(&a. I +re+are" a ;uestio!!aire .hich co!siste" of A ;uestio!s a!" a su##estio! s+ace at the belo. re#ar"i!# the 5 E23 GOLD ,uice. I *isite" arou!" ($@ +eo+le at "iffere!t +laces to #et their fee"bac0 about the +ro"uct. 8asically I trie" to 0!o. ho. ma!y +eo+le .ere there .ho e*e! 0!o. about this +ro"uct because most of them .ere u!a.are of this +ro"uct. Duri!# the sur*ey I *isite" .oo& *aCaar Eshi+ra mallG- .oo& *aCaar Ea"itya city ce!terG a!" sh(-ra mar0et- all the +laces at i!"ira+uram o!lybecause the store ma!a#er of foo" ba=aar "i"!6t allo. me to ta0e the fee"bac0 of +eo+le i!si"e the +remise of foo" ba=aar so I too0 all the fee"bac0s from the +eo+le .ho are comi!# out of the foo" ba=aar at outsi"e of the sho+. After *isiti!# these areas I *isite" my co%%e1e cam-'s Eims !oi"aG a!" 3a%&(rams Pro&'ct P,t. Lt&.Esec3 D-!oi"aG a!" #ot the fee"bac0s from their em+loyees. Throu#h this I #ot all the fille" form a!" co!sumers fee"bac0. The! I starte" *isiti!# to the retailers of I!"ira+uram o!ly. I *isite" arou!" $% retail sho+s to #et their fee"bac0s- because almost all the sho+0ee+ers ha*e "e!ie" to fill a!y 0i!" of form so I #ot their *ie.s o!ly by the co!*ersatio!. They .ere ha*i!# so much com+lai!s re#ar"i!# the su++ly a!" "ema!". It #i*es a clear i"ea re#ar"i!# the a++roach of the stu"y to u!"ersta!" the buyi!# beha*ior of the co!sumers for the fruit ,uices. The source of i!formatio! of +ast co!sumer beha*ior for the fruit ,uices a!" the +rese!t co!sumer buyi!# beha*ior com+ares the "iffere!ces amo!# the acce+ta!ce of +ro"uct. The rece!t tre!"s of mar0et also +ay em+hasis to.ar"s the co!sumer +refere!ce. The u!"ersta!"i!# the fruit ,uice sce!ario of I!"ia is a im+orta!t stu"y to ma0e a co!clusio! re#ar"i!# the #ro.th of fruit ,uices i! the mar0et- acce+ta!ce of +articular bra!" by the +eo+le- +ast "ra. bac0s ma"e by the +ro"ucers a!" recomme!"atio!s by the co!sumers. The re*ie. of theoretical co!ce+ts .hich are the research base" *ie.- core com+ete!ce- sustai!able com+etiti*e a"*a!ta#e co!ce+t a!" the cost lea"er shi+ strate#y. The theoretical co!ce+ts of "ema!" i! this stu"y sho. the "ema!" "etermi!atio! +rocess of a +articular +ro"uct +re*aili!# i! the mar0et .ith hi#h mar0et share.

31

Source of seco!"ary "ata are the boo0s- ma#a=i!es- i!ter!et- tele*isio!- !e.s +a+ers. There is !o +articular or s+ecific boo0 .here the com+lete i!formatio! about co!sumer beha*ior for fruit ,uices is a*ailable. I! this case the i!formatio! from "iffere!t boo0s is collector a!" assimilate" accor"i!# to the stu"y ob,ecti*e. The ma#a=i!es li0e fro!tli!ebusi!ess .orl"- Su!"ay times- Lutloo0 +ro*i"e"s lot of i!formatio! for it. Tele*isio! is a!other im+orta!t source of i!formatio! for this +ro,ect from .hich rece!t "ata are collecte" for stu"y. The cha!!els li0e Star Ne.s- Aa, Ta0 - NDT? has the im+orta!ce for +ro*i"i!# the mar0et share "ata of the +ro"ucts co!si"ere" i! the stu"y. This is the curre!t source of i!formatio! i! o!ce ha!" as a har" co+y. The !e.s +a+ers Ees+ecially 8ussi!ess Ne.s+a+ersG +ro*i"e" the "esire" i!formatio!. 5i0e Eco!omic Times a!" 8usi!ess Sta!"ar" etc. these +a+ers are so im+orta!t that sometimes they +lay their role both as seco!"ary as .ell as Primary source of "ata Ebecause sometimes the curre!t i!formatio! that is a*ailable throu#h these +a+ers are !ot e*e! u+loa"e" o! I!ter!et also.G De*elo+i!# strate#y base" o! the customer fee"bac0 i.e. collectio! of +rimary "ata by co!si"eri!# a "efi!ite sam+le si=e co!si"ere" is the local area E In&(ra-'ramG. The "ata .hich are bei!# collecte" from the co!sumer "uri!# the +rimary a!alysis are se+arate" accor"i!# to their s+ecific .ei#hta#e. 7rom the ;uestio! fi*e com+arati*e ;uestio!s are co!si"ere" for com+ariso!. The o+e! e!"e" ;uestio!s a!" the close" e!"e" ;uestio!s use" i! the ;uestio!er for customer fee"bac0 ha*e "iffere!t .ei#hta#e a!" are se+arate" to ma0e a u!i;ue a!alysis. The mai! i!flue!ci!# ;uestio!s are a#ai! a!aly=e" to #et clear result from the a!alysis. The "iffere!t com+a!ies are co!si"ere" for reali=i!# the +erfect com+letio! amo!# them so that +erfect i!ter+retatio! ca! be ma"e u+o! them. 7or stu"y the fruit ,uice bra!"s .hich are co!si"ere" are seco!"ary stu"y but !ot e!cou!tere" i! the mai! stu"y. 7or "etaile" com+ariso! accor"i!# to "iffere!t +arameters li0e a*ailability- +rice;uality- fla*or- customer fee"bac0- +ac0a#i!# the ;uestio!er are sorte" out a!" the ra!0i!# are calculate". The ra!0i!# is ma"e li0e first- seco!" a!" thir". The 7irst ra!0 the hi#hest three +oi!ts- the seco!" ra!0 has t.o +oi!ts a!" the thir" ra!0 has o!e +oi!t. Accor"i!# to the ra!0 the !umbers of +erso!s are calculate" .ho ha*e #i*e! the
3.

ea%L

Tro-(canaL 2a(ntL 5resh 1o%& a!" other com+etitors are also co!si"ere" for the

ra!0 accor"i!# to the "iffere!t +arameters. The +oi!ts obtai!e" from the !umber of the +erso!s #i*es rise to i!terme"iate +oi!t. The summatio! of all +oi!ts is a result of total +oi!t .hich is the mai! criteria for com+ariso!. The tech!i;ues are use" "iffere!t for seco!"ary a!alysis as .ell as +er +rimary a!alysis. I! seco!"ary a!alysis the rele*a!t "ata are obtai!e" from !e.s +a+ersma#a=i!es- tele*isio!- a!" .ebsites. 7or +rimary "ata collectio! the tech!i;ues use" are ;uestio!er tech!i;ue a!" +erso!!el i!ter*ie.. The "ata collectio! from the +rimary source is a!aly=e" by #ra+hical metho"s. The ;uestio!ers are se+arate" accor"i!# to "iffere!t +arameters a!" "iffere!t +oi!ts are assi#!e" for them for +erfect .ei#hta#e to +lace i! the com+arati*e #ra+hs. The +ie chart- bar #ra+h a!" li!e #ra+h are use" i! this stu"y to com+are "iffere!t +arameters. After a!aly=i!# all my "ata I #ot from the co!sumers- I fou!" that the mai! thi!# is to +lace the +ro"uct at the shelf of retail sho+s- so the +ublic see it a!" #et a.are of it. 7or this .e !ee" to stre!#the! the su++ly chai!.

32

#. Pro.(%e O. The Or1an(sat(on6 72! 4A 5OOD2 8 AG O LTD9.

Com-any Pro.(%e 6 Surya 7oo" > A#ro 5t". .as i!cor+orate" i! No*ember (AA$ a!" comme!ce" its
33

commercial o+eratio!s of ma!ufacturi!# > selli!# of biscuits u!"er bra!" 9 Pr(ya1o%&9 Lctober (AAD. L*er a +erio"- they ha*e establishe" stro!# ma!ufacturi!# ca+abilities a!" ha*e i!*este" substa!tially i! "e*elo+i!# co!sumer +refere!ce for our +ro"ucts. Their tra"emar0s ) bra!"s 93aK 2e Maan1o: > 9Pr(ya1o%&: ha*e emer#e" as o!e of the most +o.erful bra!"s i! the 7M/G sector. They are committe" to i!*est i! bra!"sma!ufacturi!# ca+abilities- "eli*erables a!" "istributio! stre!#th. They ha*e three +la!ts locate" i! Greater Noi"a- 5uc0!o. > Surat. They also outsource some of their re;uireme!ts to a!other +la!t locate" i! Hy"eraba". Their ca+acities ha*e reache" (-@%-%%% MT +.a.- .hich alo!# .ith stro!# bra!" buil"i!# a!" "istributio! ca+abilities ha*e e!able" them to comma!" a si=able mar0et share i! the biscuit mar0et "es+ite com+etitio! from .ell3establishe" +layers i! the i!"ustry. After establishi!# their foothol" i! biscuit i!"ustry- they co!ti!ue" to a"o+t strate#y to i"e!tify a!" commerciali=e +rofitable #ro.th o++ortu!ities by le*era#i!# establishe" bra!" a!" "istributio! !et.or0. 7ollo.i!# this strate#y- they &(,ers(.(e& (nto man'.act'r(n1 o. 7.r'(t +'(ces9 thro'1h the(r <ho%%y o<ne& s'*s(&(ary 72'rya 5resh 5oo&s Lt&.9 (n =an'ary )00;. The ma!ufacturi!# facility is locate" at Greater Noi"a- U.P. They ha*e co!sciously i!*este" i! creati!# mar0ets for fruit ,uices a!" ha*e establishe" bra!"s such as 95resh Go%&: > 9Treat:.

8oth the bra!"s are also .ell establishe" a!" ha*e +e!etrate" i!to the fruit ,uice mar0et a##ressi*ely by comma!"i!# co!si"erable mar0et share. They ha*e also foraye" i!to the aerate" fruit "ri!0 se#me!t .ith the lau!ch of 9 5resh 5(CCy.: They are also a##ressi*ely mar0eti!# their +ro"ucts i! i!stitutio!al cate#ory. Prese!tly their +ro"ucts *i=. biscuits a!" fruit ,uices are su++lie" to Airli!es- Hotels- Rail.ays- /a!tee!s Stores De+artme!t E/SDG a!" or#a!i=e" retail outlets. They are also "i*ersifyi!# i!to ma!ufacturi!# of 9chocolate a!" toffee > ca!"y: throu#h our .holly o.!e" subsi"iary 9Surya Processe" 7oo" P*t. 5t".: at Hari".ar- Uttara0ha!"- .here *arious fiscal be!efits are a*ailable. Their strate#y of stre!#the!i!# the bra!"s es+ecially the umbrella bra!" 9Priya#ol": has resulte" i! creati!# imme!se bra!" recall *alue. They are co!ti!ui!# .ith our effort of stre!#the!i!# the bra!" .ith a scie!tific a++roach- .hich .ill result i! #ro.th of customer base- +rice +remiumco!sumer loyalty .hich is e4+ecte" to result i! i!crease" ear!i!# a!" ultimately e!ha!ci!#
34

e!ter+rise *alue of our com+a!y. Thus the companys manifesto is to build on the present strength created over the years and diversify into products and geographic portfolio. We aim at achieving profitable growth by penetrating into the consumption market to enhance market share by constantly innovating on product profile, investing in infrastructure thereby accelerating the top line growth to enhance the market share. Delhi N/R3base" Surya 7oo"s a!" A#ro 5t"- ma!ufacturers of Priya#ol" biscuits- has

foraye" i!to the ,uices se#me!t. It has set u+ a state3of3the3art ma!ufacturi!# facility i! Greater Noi"a .ith a! i!*estme!t of Rs $@ crore. The +la!t has a ca+acity of +ro"uci!# (.@ la0h litres of ,uice +er "ay. 8ra!"e" W7resh#ol"<- the o!e3litre ,uice i! carto!s is a*ailable i! su+ermar0ets a!" malls i! a!" arou!" Delhi for Rs %. S+ea0i!# to 8usi!ess 5i!e- Mr 8.P. A#ar.al- /hairma!- Surya 7oo"s a!" A#ro 5t"- sai"- VThou#h the ,uices are curre!tly a*ailable o!ly i! the !orther! mar0ets: The Rs D%%3crore tur!o*er com+a!y is also setti!# u+ a biscuit south by the !e4t mo!th. 2e are also ma!ufacturi!# +la!t i! Uttara!chal to a*ail of the ta4 i!ce!ti*es. V2e are i!*esti!# arou!" Rs $% crore o! the +la!t .ith a ca+acity of (%% to!!es +er "ay- .hich .oul" be o+eratio!al by December $%% -V Mr A#ar.al sai". The com+a!y has bee! 0ee+i!# a lo. +rofile .ith re#ar" to a"*ertisi!# VThe retailers "i" !ot a!" +romotio!s after its !ot3so3#oo" e4+erie!ce .ith the WPriya#ol" 0haao or 0helo< co!test. Accor"i!# to Mr A#ar.al#i*e out the cou+o!s to the e!"3co!sumers. /o!se;ue!tly- .e ha" to com+a!y has earmar0e" .ith"ra. the scheme from the mar0et.V Ho.e*er- he sai" that the +la! to lau!ch it i! the .or0i!# o! a s+ecific "istributio! !et.or0 for the same.V

arou!" Rs D crore for +romoti!# the ,uices. 2hile tele3commercials ha*e alrea"y be#u! o! I!"iaT?- the com+a!y is ho+eful of ru!!i!# them o! all other cha!!els by the !e4t fort!i#ht. it is also i! the +rocess of s+ruci!# u+ its e4+orts o+eratio!s. /urre!tly it e4+orts its biscuits to cou!tries such as Dubai a!" Ne+al. Accor"i!# to Mr A#ar.al- VThe hi#h le*el of ta4atio! i! the "omestic mar0et- .hich is a ma,or co!cer!- is o!e of the reaso!s .hy .e are loo0i!# to i!crease e4+ort *olumes.V E4+lai!i!# further- he +oi!te" out that hi#h i!+ut costs a!" ta4es are affecti!# mar#i!s a!" +rofits.
35

As fierce com+etitio! from other +layers is +re*e!ti!# the com+a!y from i!creasi!# +rices- he sai"- VHi#h ta4es are e*e! forci!# ma!ufacturi!# u!its to close "o.!. I! fact- .e ha*e alrea"y ha" to shut "o.! t.o out of si4 com+a!y<s +la!ts.V 2hile s+ea0i!# o! the com+a!y<s +erforma!ce- he sai"- V2e face imme!se com+etitio! !ot ,ust from com+etitors i! or#a!ise" retail but also from the u!or#a!ise" mar0et .hich hol"s almost C%J of the mar0et share a!" has the be!efit of !ot bei!# sub,ect to a!y ta4es.V The #o*er!me!t !ee"s to loo0 i!to the matter before the situatio! .orse!s- he a""e".

@'a%(ty Ass'rance
Surya 7oo"s > A#ro. EPG 5imite" e!sures that the hi#hest le*els of ;uality are mai!tai!e" throu#hout the ma!ufacturi!# +rocess. Each ste+ of our +rocesses u!"er#oes strict chec0s at *arious le*els- bei!# su+er*ise" by our ;uality assura!ce team. All the +ro"ucts are ma!ufacture" u!"er (%%J clea! a!" hy#ie!ic co!"itio!s. Lur s+eciality lies i! our ability to "eli*er +ure a!" !atural ,uices i! a .i"e *ariety of fla*ours .ith !o artificial i!#re"ie!ts a!" are com+letely safe for co!sum+tio!. All the +ro"ucts are +ac0e" i! air3ti#ht +ac0a#i!# materials to restore their fresh!ess. The "ate of ma!ufacturi!# as .ell as that of e4+iry are clearly me!tio!e" o! the +ac0 so as to a*oi" a!y co!fusio!. L!ly a++ro*e" +ro"ucts that meet the stri!#e!t sta!"ar"s lai" "o.! by the rele*a!t foo" authorities are se!t for "is+atch.

The(r Processes
Lur ma!ufacturi!# +rocesses are co!"ucte" u!"er the most hy#ie!ic co!"itio!s- a!" .e ha*e a clea! ma!ufacturi!# facility .hich is .ell e;ui++e" .ith a host of a"*a!ce" a!" so+histicate" machi!ery for our +ur+oses. Ma!y of our machi!es li0e Tetra Therm Ase+tic 7le4- the latest sterili=ers- are e4clusi*ely im+orte" from cou!tries li0e S.e"e!. Lur *ersatile +ac0a#i!# "e+artme!t ma0es use of the most sta!"ar"i=e" +ac0a#i!# materials to #i*e our +ro"uct a! attracti*e a++eal as .ell as to 0ee+ the co!te!ts i!tact a!" safe. All the +ro"ucts are store" i! a ca+acious .arehouse .ith col" stora#e facility- thereby e!abli!# us to meet all forms of mar0et "ema!"s i! the most efficie!t ma!!er.

37

The(r 2tren1ths

2ell "e*elo+e" i!frastructure for efficie!t +rocessi!# A team of +ro3acti*e a!" ;ualifie" staff ha*i!# years of e4+erie!ce A .i"e *ariety of +ro"ucts i! "iffere!t fla*ours .ith hi#h !utritio!al *alue Xuality chec0s i! accor"a!ce .ith the !atio!al a!" i!ter!atio!al sta!"ar"s

/o!sta!t research a!" i!!o*atio! to +ro"uce better +ro"ucts.

Kar(shma 0a-oor M Aran& Am*assa&or .or Pr(ya1o%&

Merely before cou+le of .ee0s- .e ha" alluri!# missy Dee+i0a Pa"u0o!e si#!i!# for 8SN5 as bra!" ambassa"or. 7i!eN 2e ha*e o!e more hot celebrity #etti!# ro+e" i! for bra!" ambassa"orshi+- but !ot for 8SN5. Karishma Ka+oor has bee! o+te" as !e. bra!" ambassa"or for <Surya 7oo" > A#ro 5t"<H a U.P. base" 7oo" /om+a!y at Noi"a- 0!o.! for Priya#ol" biscuits. Soo!er- .e .ill es+y the +ulchritu"i!ous actress recomme!"i!# three +ro"ucts from the Priya#ol" stable ' 8utter bite- 8utter bite 8a"am Pesta a!" Marie lite. Perha+s- this is the first time Priya#ol" has +referre" for celebrity e!"orseme!t. A!" earlier- it .as T? +erso!ality Priya Te!"ul0ar .ho +lum+e" for these +ro"ucts a "eca"e a#o. Karishma has s+elle" that it<s because of her +erso!al +refere!ce for Priya#ol" +ro"ucts- she si#!e" for bra!" ambassa"orshi+. Karishma Ka+oor is the !e. bra!" ambassa"or of the Noi"aH U.P. base" fast emer#i!# foo" com+a!y 9Surya 7oo" > A#ro 5t":- 0!o.! for Priya#ol" biscuits. This is the first time Priya#ol" has o+te" for celebrity e!"orseme!t si!ce the T? +erso!ality Priya Te!"ul0ar e!"orse" the biscuit for I!"ia!s te! years bac0. 7or Karishma the +ro"uct fits i!to her life seamlessly. She is a celebrity house.ife- mother a!" co!cer!e" of the ;uality of .hat she a!" her family co!sumes.

Karishma .ill soo! be see! recomme!"i!# three +ro"ucts from the Priya#ol" stable ' 8utter
38

bite- 8utter bite ba"am +esta a!" Marie lite. The a"*ertiseme!ts create" are strai#ht for.ar" bra!" e!"orseme!t .ith !o com+licate" storyli!e or s+ecial effects i! the *isual. The messa#e to the *ie.ers is clear. 92e ha" bee! loo0i!# for a celebrity .ho ca! easily be associate" .ith our +ro"uct. I! Karishma Ka+oor .e #ot that. 9Karishma bei!# a mo"er! "ay house.ife a!" a celebrity mother is al.ays co!cer!e" about her 0i"6s > family6s health i! to"ay6s hectic life- sai" She0har A#ar.al- Director of Surya 7oo". 9Priya#ol" biscuits are fa*orites i! 0i"s. I too ha*e #ro.! u+ eati!# these biscuits a!" li0e the taste imme!sely. I! fact I a#ree" to e!"orse the +ro"uct it is because of my +erso!al +refere!ce for Priya#ol" +ro"ucts:. Sai" Karishma Ka+oor The reaso! .hy the com+a!y has o+te" to 0ee+ the messa#e "irect a!" sim+le is the fact that such e!"orseme!ts are easy to recall. U!li0e other celebrity e!"orseme!ts of similar +ro"ucts .here film stars ha*e bee! see! +romoti!# biscuits- at the e!" of the "ay *ie.ers fail to recall the +ro"uct. Also She0har feels that biscuits are commo"ities a!" !ee" to be +romote" as such.

Choco%ate ne<s
Surya 7oo" > A#ro is #oi!# to i!tro"uce chocolates a!" .afers i! No*ember as +art of its +la! to e4te!" the +ro"uct +ortfolio. Surya 7oo" > A#ro is a lea"i!# biscuit ma!ufacturer of the WPriya#ol"W bra!". This is a Noi"a base" com+a!y a!" has a tur!o*er of Rs C%% crore. No.- the com+a!y is e4+ecti!# its !e. +ro"ucts to re#ister re*e!ue of Rs (% crore by Mar D(. She0har A#ar.al- the "irector of the com+a!y sai"- VLur chocolate a!" .afers .ill be i!tro"uce" i! the mar0et .he! our Hari".ar +la!t comme!ces o+eratio!s i! No*ember.V He a""e"- VI!itially- our tar#et is the !orth I!"ia! mar0et .here Priya#ol" has a stro!#hol".V
36

He sai" that about (% *aria!ts of chocolates a!" .afers .oul" be lau!che" there. A#ar.al i!forme" that the com+a!y has i!*este" Rs D% crore i! the +ro,ect for i!stalli!# mo"er! machi!eries for the (% to!s +er "ay ca+acity +la!t at Hari".ar. The chocolates a!" .afers .oul" be sol" u!"er WPriya#ol"W bra!" .ith a se+arate sub3bra!" for each ?aria!t- he sai". 8ut- A#ar.al "e!ie" to "isclose the !ames of *aria!ts- but sai" they .oul" be +lace" !ear the e4isti!# !ames of bi# +layers li0e Nestle a!" /a"bury. The com+a!y .ill 0ee+ the +rice of their chocolates same as the lea"i!# com+a!ies. A#ar.al a""e"- VLur +ro"ucts .ill be chea+er as they .oul" ha*e more ;ua!tity i! .ei#ht.V The com+a!y .oul" le*era#e o! the e4isti!# !et.or0 of Priya#ol" biscuits for "istributio! +ur+ose a!" offer more "iscou!t to retailers so that they are attracte" to 0ee+ the +ro"ucts. The biscuit ma!ufacturer- .hich also ma0es ,uices- has a co!si"erable mar0et share i! DelhiUttar Pra"esh- Harya!a- Pu!,ab a!" Ra,astha!.

Pro&'cts F 2er,(ces 6
2e are ma!ufacturer- su++liers a!" e4+orters of 8iscuits such as 1 8utter 8ite /rac0 N /heers Nice Day Marie 5ite Ki"s /ream 8utter Stra.berry /hocolate /oco!ut cru!ch Glucose ? E4tra Ma#ic Gol" S!ac0s Yi# Ya# Lra!#e
40

/hee= 8it Reera To+ /ashe. /heese /rac0er Elaichi Mil0 Tric03or3Treat Pi==a 8iscuits Souther! Style biscuits such as S+ices- /heese > 8aco! 8a0e- /ream /heese > Relly 8a0e8erries > /ream 8a0e.

41

/.

E2EA C3 ANAL42I2

4.

The +rimary research a!alysis fulfill the ob,ecti*es of the stu"y. Accor"i!# to the ob,ecti*e the "ema!" for the fruit ,uice is more but if .e co!si"er a +articular +ro"uct out of the four +ro"uct .hich .e are ta0e! i!to co!si"eratio! are Real- Tro+ica!a7resh#ol" a!" Sai!t.

CON2!ME AWA ENE22 5O 5 !IT =!ICE2

If .e com+are the co!sumer a.are!ess for each bra!" the! it is satisfactory that all the co!sumers ha*e the 0!o.le"#e re#ar"i!# the fruit ,uices a*ailable i! the mar0et. Accor"i!# to the co!*ersatio! "uri!# filli!# the ;uestio!!aire +eo+le "ri!0 fruit ,uice for e!er#y i!stea" of #etti!# rela4atio!. It is fou!" that O&J co!sumer co!sume fruit ,uices for e!er#y. Thou#h the caloric *alue of fruit ,uice is hi#h it is co!sume" for the +ur+ose of #etti!# e!er#y. The co!sumer a.are!ess for fruit ,uice is more amo!# all co!sumers.

42

Cons'mers 1et a<are .or .r'(t +'(ces thro'1h &(..erent mo&es

The sources of a.are!ess re#ar"i!# the +ro"uct are the T.?.- Ne.s +a+ersMa#a=i!es- 2ebsites- 8a!!ers etc. It is fou!" that the ba!!ers "is+laye" i! "iffere!t +laces attract their atte!tio! to.ar"s the +ro"uct a lot. Lut of (%%J- (DJ EotherG of +eo+le attracte" to.ar"s the ba!!er a"*ertiseme!t. Tele*isio! is the most "ema!"e" for #etti!# a.are!ess re#ar"i!# fruit ,uices a!" their cha!#es ma"e time to time. D&J co!sumers #et the i"ea about fruit ,uices from tele*isio!.

CON2!ME DEMAND 5O

5 !IT =!ICE2

As from the a!alysis &@J of +eo+le use to ta0e ,uices "aily. Lut of .hich most of the +eo+le "o !ot 0!o. about most of the bra!"s .hich are a*ailable i! the mar0et- li0e fresh#ol"- leh berry- sai!t etc. They o!ly 0!o. about those bra!"s .hich they use i! their "ay to "ay life li0e Real- Tro+ica!a etc.. The "ema!" for fruit ,uices i!creases
43

because of the #ro.i!# i!come of each i!"i*i"ual a!" i!crease i! +urchasi!# ca+acity. The cha!#e i! co!sum+tio! foo" habit has really affecte" the "ema!" of fruit ,uices. The bra!" !ame has a #reat i!flue!ce to.ar"s sales. Most of the +eo+le say that Real is the best bra!" a!" they .ill #o for Real o!ly- lesser +eo+le tha! Real .a!t to #o for Tro+ica!a a!" subse;ue!tly the "ema!" "ecreases amo!# 7resh #ol"- Sai!t- 5eh berry a!" others. The *arious cam+ai#!s or#a!i=e" by the fruit ,uices com+a!ie" ha*e also i!crease" the co!sum+tio! "ema!" for fruit ,uices. It is obtai!e" from the +rimary research that @DJ of co!sumers +refer Real ,uice as com+are" to Tro+ica!a- 5eh 8erry- 7resh #ol"- Sai!t. It is obser*e" that 7resh #ol" has lesser co!sumer attracte" to.ar"s it sho.s the lesser "ema!" by co!sumers accor"i!# to *arious +arameters .hich are e4+lai!e" i! the other a!alysis as follo.e". 5eh 8erry a!" Tro+ica!a has the same "ema!" i! the mar0et because of their retail +rice i! the mar0et for .hich the co!sumers buy it. The +romotio!al factor .hich has #reat im+orta!ce to.ar"s the "ema!" of the fruit ,uices.

CON2!ME 2 DEMOG AP3IC P O5ILE AND P E5E ENCE 5O =!ICE2

5 !IT

44

7rom the a!alysis it is fou!" that the fruit ,uices co!sum+tio! "e+e!"s u+o! "iffere!t a#e #rou+s. Duri!# the sur*ey I fou!" that CDJ of the co!sumers of a#e #rou+ $%3D% li0es to co!sume fruit ,uice. Subse;ue!tly $&J co!sumers from the a#e #rou+ D%3C%- (CJ +eo+le from the a#e #rou+ C%3@%- OJ co!sumers bet.ee! the a#e #rou+ @%3 %- DJ co!sumers .ere abo*e the a#e of % .here as o!ly @J co!sumers .ere belo. the a#e of $%.

45

L!e more thi!# I #ot from the a!alysis of my ;uestio!!aire that out of (%%J o!ly $J +eo+le li0e +ac0e" ,uices .here as D&J +eo+le li0e ,uices .hich is freshly +re+are" i! fro!t of their eyes by local ,uice .ala. They belie*e that the +ac0e" ,uices co!tai!s ma!y e4tra!eous substa!ces or i!#re"ie!ts a!" loose ,uices are fresh a!" co!tai!s !ot a!y e4tra!eous i!#re"ie!ts or +reser*ati*es so that the loose ,uices are more be!eficial tha! the +ac0e" o!e. They "o!6t li0e the taste of +ac0e" ,uices because it #i*es the taste li0e a cou#h syru+s as they sai".

CON2!ME I2 P E5E

ED A AND

I co!"ucte" a sur*ey amo!# ($% +eo+le to 0!o. about their +refere!ces- that at .hich bra!" they rely the most. The sur*ey .as co!"ucte" amo!# fi*e bra!"s 7resh#ol"- Real- Tro+ica!a- Ts a!" Sai!t. Amo!# all these bra!"s most of the +eo+le sai" that they li0e Real- 5esser sai" Tro+ica!a a!" a *ery fe. sai" 7resh #ol" a!" other bra!"s. As a result of the sur*ey C J +eo+le li0e Real .here as DDJ li0e Tro+ica!a- !o o!e sai" about #o"re,6s Ts a!" o!ly @J +eo+le sai" about fresh #ol". ( J +eo+le li0e other bra!"sEsai!t- leh berry a!" other local bra!"sG a*ailable i! the mar0et. Most of the +eo+le .hom I met they "o!6t e*e! 0!o. about fresh #ol"- they came to 0!o. about fresh #ol" throu#h the ;uestio!!aire o!ly.

47

CON2!ME I2 P E5E ENCE 5O

PACKAGING

48

As +er the #ra+h abo*e sho.! the +ac0a#i!# is "i*i"e" i!to four ty+es- i.e. tetra +ac0- +lastic bottle- ca! a!" #lass bottle. 7rom the sur*ey it .as a!aly=e" that O%J of +eo+le li0e tetra +ac0- (&J of co!sumer li0e +lastic bottle- AJ of co!sumer li0e ca! a!" DJof +eo+le li0e to ha*e ,uice is #lass bottles.

AWA ENE22

EGA DING T3E 5 E23 GOLD

Duri!# the sur*ey .he! I as0e" +eo+le about fresh #ol"- most of them ha*e re+lie" they "o!6t 0!o. about this +ro"uct a*ailable i! the mar0et. After com+letio! of sur*ey .he! I a!alyse" the +rimary "ata collecte" I #ot that arou!" O%J +eo+le are there .ho "o!6t e*e! hear" about fresh #ol". L!ly D%J +eo+le .ere about its e4iste!ce. The +eo+le .ho 0!o. about this or .ho ha*e taste" it earlier +raise" it *ery much.

COMPETITO 2 MA KET 23A E

46

The com+etitors mar0et a!aly=e" from the acce+ta!ce of +articular +ro"uct or it ca! be u!"erstoo" li0e that3ho. ma!y customers retai!e" by each fruit ,uice bra!". It is stu"ie" that real has ca+ture" the ma4imum !umber of customer i! the mar0et. 7rom the fi#ure belo.3 the customer rete!tio! ca! be 0!o.!.

7rom the abo*e #ra+h the !umber of customers retai!e" by each bra!" ca! be 0!o.!- tro+ica!a has retai!es DDJ customers- real has retai!e" the most @DJ customers- fresh #ol" has retai!e" J .here as sai!t has DJ a!" other bra!"s Eleh berry- Ts a!" ma!y more combi!e"ly G has retai!e" @J customers.

Most -o-'%ar .%a,o'r A sur*ey is co!"ucte" amo!# ($% +eo+le ,ust to 0!o. about their taste +refere!ce. I! the ;uestio!!aire a ;uestio! .as there about the fla*our .hich they #e!erally ha*e. I as0e" amo!# fla*ours ora!#e- a++le- +i!ea++le- tomato- mi4e" fruit a!" other fla*ours. At the time of a!alysis I #ot that D&J +eo+le as0e" about ora!#e
50

fla*our o!ly- .hich mea!s ora!#e fla*our is most +o+ular amo!# other ,uice fla*ours. Lra!#e #ot D&J- a++le #ot (CJ- +i!ea++le #ot AJ- tomato #ot DJ- mi4e" fruit #ot DCJ a!" there .ere +eo+le .ho "o!6t li0e a!y of these- they +referre" to ha*e other fla*ours.

P! C3A2ING CAPACIT4 O5 CON2!ME Althou#h the +urchasi!# ca+acity of the co!sumer is i!creasi!# o! "ay to "ay basis i! +rese!t scea!ario but e*e! thou#h they "o!6t .a!t to s+e!" more o! it. A ;uestio! .as as0e" to them that about the +rice of o!e litre of ,uice. Most of the +eo+le sai" ma4imum rs % for o!e litre of ,uice. Arou!" CDJ +eo+le sai" that its +rice shoul" be u+to rs %- .here as (CJ sai" (3 @- (AJ .ere i! fa*our of 3O%- (OJ fa*oure" O(3 O@ a!" OJ sai" that they ca! +ay more tha! rs O@ for o!e litre of ,uice.

51

=!ICE BE IT4 Is the sur*ey a ;uestio! .as as0e" about the *erity of ,uice- mea!s .hat 0i!" of ,uice they li0e most .ith su#ar or .ithout su#ar. Some of the +eo+le sai" they li0e ,uices .ithout su#ar but arou!" O%J +eo+le li0e ,uices .ith su#ar- mea!s D%J +eo+le are there .ho "o!6t li0e ,uices .ith su#ar. 8y 0ee+i!# this thi!# i! mi!" Real has lau!che" 9Real acti*e:- this is the +ro"uct .hich co!tai!s !o su#ar. This +ro"uct is s+ecially for those +eo+le .ho are "iabetic +atie!t or calory co!cious or those .ho "o!6t li0e ,uice .ith su#ar. Throu#h real acti*e "abur has tar#ete" that D%J co!sumers.

5.

CON2!ME CONCE N2 Throu#h a ;uestio! I trie" to 0!o. .hat is the most im+orta!t thi!# i! a ,uice for the +eo+le. Mea!s .hat matters them the most amo!# taste- ;uality a!" +rice. @J +eo+le sai" about the ;uality of the ,uice- that matters them the most- D%J of them +referre" taste a!" @J sai" about the +rice- mea!s +rice effects them the most.

52

:. CONCL!2ION

53

The ob,ecti*e of the stu"y is to a!alyse the co!sumer beha*ior .ith res+ect to 7resh Gol" by co!si"eri!# fi*e fruit ,uice bra!"s i! the mar0et. Tro+ica!a- Real- Sai!t7resh#ol" a!" Ts the fi*e bra!"s .hich are ta0e! i!to co!si"eratio! for the stu"y. These fi*e bra!"s are i"e!tical .ith res+ect to "iffere!t characteristics. The thorou#h stu"y is base" o! the co!sumer beha*ior a!alysis .hich ser*es a #reat i"ea re#ar"i!# co!sumer +erce+tio! .he! they #o for a +articular bra!" to fulfill their !ee"s. I! or"er to satisfy themsel*es co!sumer +ercei*e ma!y thi!#s before buyi!# .hich are a!alyse" i! this +a+er a!" result is obtai!e". The .hole stu"y satisfies the ob,ecti*e of the stu"y. The mar0et share is stu"ie" for each bra!" s+ecially fresh#ol# by ta0i!# i!to co!si"eratio! for the +ro"uct they li0e to buy or they are buyi!#. It is fou!" that real has retai!e" ma4imum !umber of customers .here as other bra!"s ha*e retai!e" lesser !umber of co!sumers. 7resh#ol" has a *ery fe. !umber of co!sumers- about @3 J of co!sumers li0e to ha*e fresh#ol" .here as Real a!" Tro+ica!a ha*e @D a!" DDJ co!sumers i! the mar0et. 5resh1o%& has %ess mar0et shares or <e can say a ,ery .e< -eo-%e <ant to *'y (tL there are se,era% reasons *eh(n& (t %(0e %ac0 o. a<arenessL %ac0 o. -romot(onL -eo-%e &onIt a<are o. (tL %ac0 o. a,a(%a*(%(tyL cons'merIs a..ect(on to<ar&s ea% an& Tro-(cana or other *ran&s *eca'se o. tasteL .%a,orL K'a%(ty etc. One o. the ma(n reason can *e the reta(%ers &onIt <ant to se%% (t *eca'se o. %ess &eman& an& (m-ro-er s'--%y cha(n mana1ement. Most o. the reta(%ers &onIt <ant to se%% (t *'t those <ho <ant to se%% (t &onIt 1et the -ro&'cts .rom the &ea%er at r(1ht t(me. 2o (ts sa%es &onIt (ncrease e,en (. the &eman& o. the +'(ce (s h(1her. 5rom the month o. A-r(% to 2e-tem*er sa%e o. +'(ces (ncreases &'e to s'mmersL +'(ce mar0et eJ-an&s &'r(n1 th(s t(me on%y . So the fresh #ol" ca! cha!#e their strate#ies for retai!i!# more !umbers of co!sumers for satisfyi!# their ob,ecti*es. 7resh #ol" ca! ta0e more !umber of co!sumers if they ta0e some i!itiati*es for those +arameters i! .hich it is behi!" of them. The +arameters .hich are co!si"ere" i! this stu"y really affect the co!sumer buyi!# beha*ior those are a*ailability- ;uality- +rice- ;ua!tity- customer fee"bac0 a!"
54

+ac0a#i!#. I! some cases Tro+ica!a is #oo" as com+are" to other bra!"s but simulta!eously it is !ot #oo" if .e co!si"er some other +arameters. Real has #ai!e" ma4imum !umber of +oi!ts i! case of a*ailability- ;uality- fla*or- +ac0a#i!#. Real has #ot lesser +oi!ts for +rice because as +er co!sumers the +rice is !ot satisfyi!# them .here as the other bra!"s are ha*i!# satisfactory +rice. /o!sumer a.are!ess is also a! im+orta!t factor for the +ro"ucers from .here they 0!o. about the co!sumer i!terest re#ar"i!# their +ro"ucts. /o!sumer +erce+tio! #e!erally cha!#es from time to time because of the cha!#es i! bra!"s i! +romotio!al acti*ities. These are obtai!e" from the stu"y that the a.are!ess i!creases the mar0et share of the +ro"uct.

55

;.

ECOMMENDATION2

57

This stu"y #i*es a clear i"ea re#ar"i!# co!sumer beha*ior .hile +urchasi!#. The strate#y for the +ro"ucts ca! be cha!#e" by com+ari!# the "iffere!t factors that has obtai!e" from the stu"y. Real has obtai!e" the hi#hest mar0et share by 0ee+i!# i! co!si"eratio! the +arameters li0e co!sumer fee"bac0- +ac0a#i!#- "eli*ery mo"e;ua!tity a!" a*ailability. Tro+ica!a is *ery !ear i! e*ery as+ect to real a!" by cha!#i!# the strate#y li0e a*ailability a!" +romotio!al acti*ities it ca! cross the mar0et share of Real *ery easily. The +rice of Tro+ica!a is affor"able a!" has more !umber of customers .hose +rofessio! is stu"e!t a!" falls bet.ee! the a#e $%3D% li0e it. Rust li0e these bra!"s fresh #ol" shoul" also come for.ar" for a##ressi*e mar0eti!#. As .e ha*e alrea"y see! from the stu"y most of the +eo+le "o!6t e*e! 0!o. about fresh #ol"- they "o!6t a.are of it so there shoul" be more a!" more +romotio!al acti*ities. Promotio! shoul" be "o!e throu#h AT5 a!" 8T5- both the +rocesses. 7or AT5 +romotio! they shoul" arra!#e more a!" more a"*ertiseme!ts o! "iffere!t T.?. cha!!els. Es+ecially at +rime time so that more a!" more +eo+le ca! be a.are of it. Lther tha! the tele*isio!s they shoul" also #i*e the +romotio!al a"*ertiseme!ts o! ra"ios- !e.s+a+ers a!" "iffere!t ma#a=i!es- so that a lar#e !umber of co!sumer ca! be ma"e a.are of it. At time to time they shoul" #i*e a +romotio!al offers o! it li0e 9sa*e rs $% at the +urchasi!# of t.o +ac0s of ,uices: or 9#et t.o +ac0s of ,uices Z (%% o!ly: a!" more li0e this. So the +eo+le .ho #e!erally *isite" to the "e+artme!tal stores li0e 8i# 8a=aar or S+e!cer- ca! #et the offer easily. They shoul" also +ro*i"e these ty+es of offers to the retailers so the +eo+le .ho "o!6t *isit malls ca! #et the offers. A+art from these acti*ities com+a!y shoul" also or#a!i=e the 8T5 E8elo. The 5i!eG +romotio!s to ma0e more a!" more a.are!ess. 7or 8T5 +romotio!s- com+a!y shoul" choose some cro."e" areas is e*ery territory a!" or#a!i=e cam+s there. /om+a!y em+loyee .ill meet e*ery +eo+le roami!# i! that +articular +lace a!" #i*e a sam+le of ,uice to taste a!" !ote "o.! their reactio!s. 2hat .ill be the result of it that the +erso!s .ho "oes!6t e*e! taste but see they .ill become a.are of it. Throu#h this +rocess .e ca! also .atch that ho. much !e. customer .e ma"e i! that +articular locatio!. Alo!# .ith that .e shall try to co!*i!ce the retailers also to 0ee+ the +ro"uct i! their sho+s. 7or this com+a!y shoul" #i*e them some s+ecial offers a!" #ifts. As .e 0!o.
58

retailers are the mai! source of 8T5 a"*ertiseme!t so firstly .e !ee" to co!*i!ce retailers a!" +lace the +ro"uct at e*ery retail sho+s at eye le*el of the customer because 9eye %e,e% (s *'y %e,e%9. U!til .e "o!6t +lace the +ro"uct at the sho+ the sell ca!6t be i!crease a!" all the a"*ertiseme!t .ill become .orthless. So before lau!chi!# a !e. fruit ,uice bra!" i! mar0et the +arameters .hich ha*e ta0e! i!to co!si"eratio! must be utili=e" for better co!sumer attractio!.

56

7. APPENDI>

70

@!E2TIONNAI E
1. Ho. ma!y time you ta0e ,uices "aily U EaG. ( EbG. $ EcG. more tha! $ E"G. !o!e

$. 2hich ,uice you +refer to ha*e U EaG. loose EbG. +ac0e"

D. At .hich bra!" .oul" you rely U EaG. Tro+ica!a E+e+sicoG EbG. real E"aburG EcG. Ts E#o"re,G E"G. sai!t E+arleG

EeG. fresh #ol" E+riya #ol"G EfG. a!y other C. Ha*e you hear" about fresh #ol" U Pes [[[[. @. 2hich fla*our you li0e the most U EaG. a++le EbG. ora!#e EcG. +i!ea++le E"G. tomato EeG mi4e" fruit EfG. a!y other . U+to ho. much +rice ca! you +ay for a liter of ,uice U EaG. u+to rs.3 % O. Pou li0e ,uice EaG. .ith su#ar E.)sG &. 2hat matters you most EaG. taste A. EbG. ;uality EcG. +rice EbG. .ithout su#ar E.o)sG EbG. (3 @ EcG. 3O% E"G. O(3O@ EeG. more tha! O@ No [[[[..

Ho. ma!y +oi!ts .ill you #i*e to these +ro"ucts out of (% +oi!ts[. EaG. Tro+ica!a E+e+sicoG3 EbG. real E"aburG3 EcG. real acti*e E"aburG3 E"G. fresh #ol" E+riya #ol"G3 EeG. sai!t E+arleG3

(%. A!y su##estio![[[[[[[[[[[[[[[[[[[[[[[[[..........................

71

AIALOG AP34
o

Primary "ata collecte" by me o!ly throu#h the ;uestio!!aire a!" *erbal "iscussio!s

o o o o o o

9Pri!ci+les of mar0eti!# ma!a#eme!t: by Phili+ 0otler Mar0et(n1 mana1ement - Wikipedia, the free encyclopedia .... Price.aterhousecoo+ers.com ....researcha!"mar0et.com ....f!b!e.s.com ....ibef.or# EI!"ia! bra!" e;uity fou!"atio!G

7.