Professional Documents
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Repositioning of Frooti
SUBMITTED TO:
Prof. Ashwin Bhatia
SUBMITTED BY:
Abhishek Pathak
Aparna Srivastava
Faraz Khan
Kapil Dev Agrawal
Rahul Pandey
Shubam Sharma
Saravjeet Singh
ACKNOWLEGDEMENT
PRODUCTS
1. FROOTI
2. BAILLEY AQUA
3. N-JOI
4. APPY
WHY FROOTI:
Soft drink market can be divided into two categories: -
1. Carbonated soft drink
2. Non-carbonated soft drink (NCSD).
Frooti is the market leader in the NCSD category with around 60%
market share. The NCSD mark et is growing but there is intense
competition among the various segments in this market. The market share
of Frooti in the NCSD category is on the decline because of the Fruit Juice
Segment, which is increasing at the rate of 20% per annum along with the
sluggish growth of the Fruit drink segment. To counter this onslaught,
Frooti has introduced PET bottle packing in 250 ml, 500 ml and 1000 ml
and Tetra-pack packing in 65 ml quantity. Therefore, we have taken up
this project to suggest recommendations to P arle to increase the share of
Frooti in NCSD category and to study the market response of the new
packaging of Frooti.
ABOUT FROOTI
Mango - India‟s national and most premium fruit was a virtually
untapped segment until the year 1985, which saw the launch of Frooti
Mango in a trendy convenient tetra -pack. Frooti Mango is Parle Agro‟s
flagship brand and India‟s leading fruit drink wi th an 85% market
share.Now, Frooti also comes in PET bottle packing. Frooti is like an
Indian ambassador and is a hot favourite not only in India but all across
the world. Frooti is the first tetrapak fruit juice in India. Launched in 1984, Frooti still
holds a dominant position in the Rs300 crore tetrapak fruit juice (TFJ) market. Frooti
over these years have carved out a niche for itself in the market. Frooti instantly caught
the fancy of Indian consumer with its tetrapak and some smart campaigns. Initially the
drink was positioned as a kids drink. The product was perceived as a healthy fruit
drink by the mothers . So within a short span of time ,the brand was an alternative to
the “unhealthy” colas. The tetrapak had other benefits also . Fruit juice is a perishable
product and tetrapak have extended the shelf life of Frooti because tetrapaks have 2
layers of paper and a plastic coating that ensured tamper proof and enhanced shelf life.
Lured by the success of Frooti, there was a lot of new launches in the TFJ market.
Players like Godrej with Jumpin, kissan etc tried their luck in this market but failed to
dislodge Frooti. Frooti was positioned as a mango drink that is “Fresh-n-juicy” For
over a 7 years, the company promoted the product using that famous baseline. The
product have tried to create excitement in the market through a series of new variants
and packing. But in late ninetees the brand was facing stagnated sales. The company
tried to excite the market with an orange and pineapple variant but both the variant
bombed. The came the experiment with packaging. The YO! Frooti variant came with a
slim paper can aimed at the college going youth. Worried by the stagnating sales, Parle
tried to reposition the brand to appeal to youth aged between 16-21. The positioning
changed to be more fun based. The package also changed. The old green color of the
bottle changed to brighter mango color with lot of graphics added to it.One of the most
famous marketing campaigns India have witnessed took place during the repositioning.
The campaign is the famous “ Digen Verma “ campaign. This campaign was considered
as one of the most successful teaser campaigns in India. The campaign lasted for 15
days started in February 2001. The campaign was about a faceless person Digen Verma.
There were posters and outdoors all across the markets that had messages like “Who is
Digen verma” “ Digen Verma was here” etc. This created lot of excitement in the market
and “Digen Verma “became the most talked about faceless name at that time. The
campaign was executed by Everest communication. But the campaign was not followed
up and the hype was not translated to long term brand building. Frooti is basically a
nectar based drink so it is not 100% fruit juice, it also have some preservatives added to
increase the shelf life. Although Frooti did not face much competition in the category it
created, competition came from a slightly different category, 100% fruit juices. Parle saw
the emergence of the “ 100% fruit drink market and launched “Njoy” brand but it did
not clicked. Parle could have extended Frooti to this market also .The brand Real from
Dabur is the main player in this category. Real effectively positioned itself as a premium
healthy drink for adults. Frooti was not able to appeal to adults and was considered as a
mango drink while Real is not restricted to any flavour. Frooti also changed its
positioning statement from „Fresh-N-juicy” to “Juice Up your life” which have not
clicked with the customers. Although Frooti enjoys a commanding (75%) market share,
Frooti is facing stagnation. May be some serious steps should be taken to increase the
usage of the product. The launch of PET bottle Frooti is a step in this direction. Recently
Frooti also launched a “Green mango” variant just to create some hype in the market.
Frooti may have to reposition itself again to appeal to cola drinkers.
INDUSTRY PROFILE
Non-Carbonated
Soft Drink
COMPETITORS:
The main competitors of Frooti are as follows: -
1. Maaza
2. Slice
3. Real
4. Tropicana
5. Jumpin
We are not taking into account the nectar segment as it constitutes a small
part of the NCSD category and also, the growth is very sluggish in this
segment.
MARKETING MIX
1. Product
2. Price
3. Place (distribution)
4. Promotion
PRODUCT:
A product is anything that can be offered to a market to satisfy a want or
need.
India‟s first real fruit drink in a Tetra Pak is available in - Frooti
Mango, Green Mango. Frooti Mango is from premium Indian Mangoes.
Frooti has also been introduced in PET bottle packing. Mango Frooti
contains vitamin A which is essential for eye sight, growth and healthy
skin. Frooti is a delicious and refreshing ready to serve fruit beverage.
Frooti comes in Fruit drink segment of NCSD category (NON -
CARBONATED SOFT DR INK).
PRICE:
TETRA PACK PACKAGING
QUANTITY PRICE (Rs.)
65 ml 2.50
165 ml 10.00
200 ml 12.00
PROMOTION DECISIONS
In the context of the marketing mix, promotion represents the various
aspects of marketing communication, that is, the
Communication of information about the product with the goal of
generating a positive customer response.
Promotion decisions i nclude:
1. Promotional strategy (push, pull, etc)
2. Advertising
3. Personal selling & sales force
4. Sales promotions
5. Public relations & publicity
6. Marketing communications budget
PROMOTION:
In a strategic move, Parle Agro Ltd is revamping its marketing pl ans
in a bid to promote its flagship brand „Frooti‟ in the overcrowded
category. In fact, the company has taken a different marketing route by
launching a host of new retailing and packaging initiatives to pump up
volumes. Three years ago, Parle Agro intro duced a mysterious character
called „Digen Verma‟ and created a hype around this person through an
aggressive outdoor campaign which was quiet a success. Parle Agro had
introduced two characters called Froo and Ti on every 200 ml pack of
Frooti as part of its retailing initiative. These two characters are being
displayed on the packs of the drink. And through tongue twisters, puzzles
and various interactive games, the characters are entertaining the children
as well as increasing their knowledge about famou s personalities and
current affairs. These two characters are very different in nature. While
Froo is an affable girl who is good at studies, Ti is a naughty boy who
keeps running after Froo to get his home -work done. With this move, the
company expects to share various activities of its target audience --kids.
Recently, Frooti was introduced in a new tetra pack packaging in 65 ml
quantity which is priced at Rs 2.50 each and Parle is promoting it as “ 5
KA 2 OFFER”, which means 2 packs for Rs 5.
Questionnaire
Yes
No
FINDINGS
Most of the respondent prefer soft drink.
Carbonated
Drink
Fruit Drink
FINDING
32 respondent like carbonated drink (i.e. PepsiCo , Coca-Cola , etc products) and
18 respondents prefer fruit drinks . So still there is more demand of carbonated
drink.
Q-3 Which fruit drink you like most?
a) Mazza -24%
b) Slice- 16%
c) Frooti- 24%
d) Real- 30%
e) Tropicana- 6%
Mazza
Slince
Frooti
Real
Tropicana
FINDINGS
People are more health couscous so Real in on top with 15 respondents.
Q-4 Should frooti come in other flavor also?
a) Yes- 70% b) No-44%
No
Yes
FINDINGS
70% (35) of respondent want to have some new flavor of innovation in the
product.
Orange
Pineapple
Mixfruit
Others
FINDINGS
Frooti Orange is the new demand of the respondent and then the Mix fruit juice.
Q-6 Is Frooti a health drinks?
Yes
No
FINDINGS
76% of respondent prefer frooti for taste and thirst and only 24% believe its good
for the health.
a) Yes-54%
b) No-44%
Yes
No
FINDINGS
Most of people believe frooti still is a child drink so frooti fail in targeting youth.
Q-8 Is Frooti readily available?
a) Yes 36% b)No 64%
Yes-
No-
FINDINGS
As per respondent frooti not easily available.
Yes
No
FINDINGS
After all the new advertisement and promotion strategy most of respondent
drink frooti because of taste and brand loyalty.
Q-11 Which packages do you prefer most ?
a) Pet bottle- 48%
b) Glass-6 %
c) Tetra pack- 46%
Pet-bottel
Glass
Tetra pack
FINDINGS
Still the demand of pet bottle is more than tetra pack and glass bottle.
65 ml
165 ml
500 ml
1000 ml
FINDINGS
Most preferred size is 600ml and then IL and 165 ml.
Q-13 Would you visit another store X, if you do not find frooti at your store?
a) Yes -12%
b) No-88%
Yes
No
FINDINGS
Demand of frooti is more depend on the availability and 44 respondents do not
prefer to search of frooti, so we can say that brand loyalty of frooti is still weak.
Reason for failure of frooti
Brand loyalty is getting low day by day of frooti as there are lot
of other competitors are in market according to our survey lot of
person refuse to go n ext store if they don’t get at there preferred
store
Low Margin for distributors and also they don’t provide them
frooti accessories like freeze, big hoardings & frooti stands.
STRENGTHS OF FROOTI:
WEAKNESSES OF FROOTI
1. Frooti is not perceived as a health drink. As per our survey majority of our
respondent didn‟t consider Frooti has a health drink.
2. Frooti has limited variety of flavour - only mango and green mango.
3. “Frooti means mango”, syndrome in the mind of consumers.
4. Margin given to retailers and distributors is less as compared to its competitors..
5. Frooti has no brand ambassador.
6. No brand expansion - Brand equity of Frooti is not utilized properly.
OPPORTUNITIES FOR FROOTI
PLACE:
1. Retail chain of NCSD in India
2. To capture the huge unorganized sector, Frooti should be promoted
as a retailing chain outlet in India on the lines of Barista which is in
the retailing of coffee.
3. This outlet should contain all the variants of Frooti in different
flavours and quantities and it should also be served in glasses.
4. Also, this outlet can be used to provide fresh fruit juices in various
flavours at a very reasonable price. This move will help Parle to
capture a major chunk of the huge unorganized sector which is more
than Rs 500 crore.
5. But, this is a highly risky move and requires lot of capital so, Parle
should first experiment by opening a few outlets.
PROMOTION
1. The nutrient content of Frooti should be highlighted on the package so that the
consumer can become more aware and perceive Frooti as a Health drink.
2. The quality standard of Frooti should be approved by a reputed authority or
organization (like ISO series) and this be promoted.
3. Taking the cost consideration into account, Parle Agro can go for more
distributor and retailer margins, as by getting more margins the retailers and the
distributors will promote Frooti more efficiently. It should also provide more
consumer schemes.
4. Parle can also promote Frooti by providing various offering like Refrigerators.
BRAND AMBASSDOR FOR THE FROOTI:
SUGGESTION:
LIMITATIONS:
1. The corporate office of Parle Agro is situated in Mumbai and so we
could not gather information from there.
2. We could not find the reason why Frooti was not introduced in
other flavours like orange, pineapple etc on all India basis (We sent
an E-Mail to the company but didn‟t get any reply).
Annexure
QUESTIONNAIRE
This questionnaire is part of a market study being conducted by me. The aim of the
study is to analyze the strategies adopted by frooti in the various stages of its lifecycle.
Any information provided would be used only for academic purpose and kept
confidential.