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COMPARATIVE SALES AND DISTRIBUTION STRATEGY FOR TROPICANA AND REAL JUICE IN NON METRO CITIES IN INDIA
NAME BATCH SECTION PHONE NO.
C. CHARAN KUMAR PGP/FW/2008-10 F-3 09885354422, 99996000396
Abstract Introduction Industry Profile Major Players Real Juice Tropicana Distribution Promotion Conclusion Recommendations Bibliography 1 2 4 13 17 20 27 29 31 33 34
The study taken up by the comparative analysis of Corporate sales and distribution strategy for Tropicana and real juice in non metro cities in India. Salesmanship is an art of demonstrating the merits of the goods and the service of an organization to make a permanent customer. Salesmanship is the art of understanding, appreciating and influencing other people for mutual benefit. salesmanship is an effort to convince people to buy the goods with benefit to themselves and reasonable profit to the seller. Thus in totality I feel that these companies should review its sales and distribution policy with much emphasis on making people aware about the product and patching up the lacunae of distribution channel. Therefore, the company wants to analyze the present market share of Real Juice and analyze the reason for this particular market share of itself and the competitor, so that, it can plan its future strategies. It also wants to knows about the key reasons that prompt the customer to make a purchase of packed fruit juice and Real Juice.
Any attempt to ignore this industry and the activity involving it would be quite futile. but its does pretend a humble attempt at analysing the marketing environment as also the marketing mix for the packed fresh juices industry. A continuous stream of new corporate entrants. its major players and their respective marketing strategies (remember. hygiene and all things natural. the analysis of the same and of course. natural fed Indian consumers are all contributing towards bringing the juice industry to the fore. the consumers’ opinions. the sudden health-conscious. It’s the complete package that would clinch the deal for the respective companies. there is a struggle for existence and the survival of the fittest: Darwin Theory). therefore. This project. the fresh fruit juice market has suddenly gained ground. The challenge now lies in making these juices part of daily household consumption. The project does not claim to be a research product on the subject chosen. Brand loyalty is diminishing as product differentiation is muted.Sales Management INTRODUCTION With attitude shifting towards health. 4 . Much is happening and more is due to happen in course of time. attempts to delve into the many facets of this industry – the industry at large.
75. the research study indicates that most of the money flowing out of an individual’s purse is spent on food and beverages. three quarters of which was fresh food. processed food accounts for just 2% of the total output. In fact. 5 .Sales Management INDUSTRY PROFILE In 1997.000 crores. The demand is ever increasing and the supply is constantly evolving new Clothing and footwear 10% Others 13% Rent. and just a tenth processed. In terms of volume. the Indian food market was placed at Rs. 15% semiprocessed. Today time pressured unitary families ensure that the food-processing sector grows at a phenomenal rate. 2. fuel & power 10% Transport & Communication 13% Food & beverages 54% market players.
Frooti. mineral water.Sales Management BREAK-UP OF PER CAPITA SPEND Processed food being tokened as convenient and hygienic almostready meals offer a lucrative market especially in the much growing and talked about beverages sector. coffee and milkfood drinks Even as the two soft drinks stalwarts – Coca-Cola and Pepsi – are slugging it out. hot beverages like tea. Beverages constitute all of cold drinks like Coke & Pepsi. Share of each being: Softdrink concentrates Tetrapacks 1% 6% Cold drinks 49% Hot beverages 40% Mineral w ater 2% Squashes & Syrups 2% Hot beverages include tea. It continues to be the leader with Jumpin. 6 . tetrapack drinks. Rs. squashes and syrups. 400 crores tetrapack market is abuzz with activity. coffee and milkfood drinks. the pioneer in the tetrapack market of India began the trend for fruit drinks. Real and Onjus following it.
Pingo Godrej Foods constitutes Jumpin Rest include Treetop.. Real etc. Onjus. Fruit content of more than 20% but Others 13% Orange 28% Mango 59% 7 . Fruit Drinks. the stipulation is upto 40% of the total content to qualify as a ‘fruit drink’. Appy. According to the stipulations by the Government FPO Act. 4000 crores drink market have been growing at the rate of 20%. Volfruit.Sales Management Rest 10% Godrej Foods 20% Parle Agro 70% ParleAgro includes Frooti. Tetrapacks which account for 10% of the total Rs. all products containing fruit content less than 20% of total product should be branded as ‘fruit drink’. Juices and Nectars. It is divided into three segments viz. in the case of oranges.
Mohan Meakin’s God Coin and Druk qualify as fruit nectars. the bulk of the products in the market fall in the ‘fruit drink’ category. The flavours as preferred are: Others include Pineapple.Sales Management less than 85% qualifies for the tag of ‘nectar’. Lipton India’s Treetop. Pingo. New thinking dawned and suddenly a fresh lease of life was granted to the beverages market. Appy. Godrej Food’s Jumpin. Litchi. in the case of oranges it has to be more than 40% and less than 85%. thanks to the fruit juices. popular brands such as the Rasna range and Kissan squashes fall in the fruit drink category. Apart from Parle Agro’s Frooti. Midland. This thought curtailed a major opportunity in the beverages sector till about a couple of years ago. Hence the project concentrates on fruit concentrates… 8 . Fruit juices are not really an integral part of the typical Indian’s diet. canned juice segment comprising of brands like NAFED. Pepsi’s Slice (mango). And finally. Apple. with a few in the ‘nectar’ range and still fewer in the ‘fruit juice’ range. the fruit content has to be more than 85%. to qualify for the tag of ‘fruit juice’. Going by this qualification. ETLs Onjus (34% market share) and Dabur India’s Real quality to be the major contenders in the fruit juice market. Guava & Mixed etc. However. Noga.
‘Frooti’ was enjoying the advantage of being the only fruit drink in the market without any competitor. Pepsi has been very aggressive.5 liter and 500 ml pet bottles. the war seems to be more intense among soft drinks. For the last one year or so. which was unimaginable till the recent past. As a result. now Dugar Beverages started providing two extra packs of Frooti on the purchase of every tray. Only recently. ‘Real’ from Dabur Nepal and ‘Frujo’ from Raybot Beverages. And it has changed its slogan which says "Juice up your life" from the earlier "Mango Frooti. Till few months ago. of Chaudhary Group. Fresh ‘n 9 . ‘Frooti’ from Dugar Beverages (P) Ltd. its earlier market share of 18 percent has gone up by another 4 percentage points to some 22%. Nepali market place has became a battlefield for various beverage brands. Now with the entry of ‘Rio’ from Gold Beverages (P) Ltd. Phuchhe Pepsi has also helped in expansion of the market volume of soft drinks. has lost its past privilege. Then it introduced 200 ml Phuchhe Pepsi at the right time and the product is doing well in the market. Therefore. The company has also started to provide credit to its wholesalers and retailers. As the weather now is hot and humid. Pepsi’s bottling company here installed pet bottle plant early February 2000 investing one hundred million rupees for it and introduced some of its brands in 1.Sales Management Hard War of Soft Drinks With the change in the lifestyle of people and modernization getting in vogue. ‘Pran’ brand of orange juice has been launched by importing it from Bangladesh.
But. be it through advertising. It is also said to be 100% pure juice (40% pulp content) with no preservatives added. It had also changed Frooti’s old TV commercial which had been on air since last one decade or so. Though it is still one rupee higher than Frujo. TV viewers bored of watching the same commercial year after year have felt some change. As a result of the new developments. 14 to make it more competitive. Quality-wise consumers can get essence based so called fruit drinks like Popayee at Rs. 6 or even lower as well as other brands for as high as Rs.Sales Management Juicy". companies are working hard to gain more market share. which is in glass bottle and is not carbonated. But general consumers are seen to regard them all as equal in quality. Claimed to be the only carbonated soft drink with fruit juice flavour in Nepal. Real has 50 ml more than all the competing brands except Frujo. Rest of the fruit drinks are in Tetra Pack except Pepsi’s ‘Slice’. Other fruit drinks like Slice. i. Frujo has one other advantage over all other brands. and three rupees higher than ‘Slice’ of Pepsi. The fruit drink market in Nepal is highly segmented quality-wise as well as market-wise. it is packed in a ‘see through’ pet bottle. Dabur’s ‘Real’ is in orange and pineapple. Content-wise too these fruit drink brands have a lot of differences. Dabur Nepal has reduced the price of its ‘Real’ juice from Rs. Frooti and Rio are 10 . 19 to Rs.e. The company has said that the reduced price offer is only for Real Orange Juice and is valid only till the stocks last. 45 for 250 ml. merchandizing or consumer schemes. two rupees higher than Frooti and Rio. Most of them are mango-based.
"With the entry of Rio. This shows how Phuchhe Pepsi has helped to increase the volume of carbonated drinks industry. says T. Pepsi) and also that of fruit drinks like Frooti and Rio. Even those who had no habit of consuming carbonated drinks have started to consume cola thanks to 11 .it is estimated that carbonated drinks market is growing slower between 10 and 15 percent a year. says a fruit drink company executive in frustration. General Manager of Gold Beverages (P) Ltd. according to estimates by the companies. The fruit drink market has grown by almost 30% this year. not real juice as Real". Gupta.Sales Management said to be nectar based (see box for required contents of different categories of beverages).K. Phuchhe Pepsi has become popular among school kids who otherwise used to have Frooti and would have gone for other fruit drinks as well. though Real was not so affected because of its premiumness. "These brands are synthetic drinks. They regard all these brands to be real fruit juice. But most of the general consumers do not know or don’t care to know about the contents. go for it. especially of the new generation. the total market for fruit drink has now tremendously gone up". However. But the interesting thing is that after the Phuchhe Pepsi was launched in the market it snatched away some of the market of carbonated drinks (including that of its own big brother 300 ml. "Almost 50% of such school kids have shifted from fruit drinks to Phuchhe Pepsi". General Manager of Dabur Nepal. says Manoj Loya. The growth is also there for carbonated drinks as people. of Chaudhary Group that owns the brand. The reason is that Phuchhe Pepsi is five rupees cheaper than other carbonated or fruit drinks.
because it is only two rupees costlier and gives a better image. people now offer Phuchhe Pepsi to friends. there are imported soft drinks as well.Sales Management Phuchhe Pepsi. In small shops. They are in Tetra Packs. and in plastic jars. Sales of canned cola and tonic water are more difficult to estimate as these items are imported from many countries like China. The fruit drinks are imported from as far away places as Philippines. trying to take all responsibility for sales and distribution 12 . which generally costs five rupees. Being a late entrant. instead of offering a cup of tea. Similarly. RNAC and Necon air also import these products for their in-flight service. but the bottling company of Pepsi in Nepal had frequent changes in ownership and management. apple. Though sales volume of imported juices has no record at all. mixed juices and in many flavours containing nectar. That gives a market share of less than 1%. Hong Kong. USA. estimation shows that about 20 MT of fruit juice (that includes imports in various packaging) is sold in Nepal every year. In taste they are in mango. Pepsi came to Nepal only in 1986. In the race for catching a respectable market share of the growing soft drink market of Nepal. in pet bottles. Singapore etc. Pepsi has been trailing far behind Coke. which range from different fruit juices to canned cola. in cans. orange. Pepsi could have expanded its market share. Since Coke entered Nepal in 1979 it has been enjoying market leadership in soft drink industry. from Bangladesh. tomato. Singapore and Thailand as well as from the nearby markets of India and more recently. 15 percent to 40 percent fruit pulp or 100% natural juice.
250. Even the remaining brands like ‘Slice’ and ‘Rio’ are yet to penetrate some markets. Similarly. Market-wise. Still. but Coke does.Sales Management directly and lacking enough advertising and promotional campaigns. On the one hand. since its rival is far stronger in many respects. Pepsi’s installed bottling capacity here is only 2. Even some very successful promotional campaigns in past could not sustain the increased demand because of limitation in production capacity.000 cases a year. in Kathmandu valley one finds growth both in the absolute quantities consumed and in the varieties available. and quick response to increased demand in some market places is difficult. Because of this the distribution cost of Pepsi is higher. almost 50 percent of fruit drink sales is said to be within Kathmandu valley alone. This will further help Nepal’s soft drink market to grow. 13 . Pepsi has no production facility in the terai region. on the other hand brands like ‘Real’ and ‘Frujo’ are not available yet outside the valley.200.000 cases a year whereas Coke’s sales volume is estimated at over 4. Its marketing has become more aggressive. But that is not going to be enough as yet.000 cases per year and that was achieved only after the commissioning of the pet bottling line about six months ago. But outside the valley the situation is not so bright. the company has been able to sell only about 1. initially the company could not attract more consumers to its brands. Of this capacity. For example. In recent times the company seems to be more serious. Pepsi has chances of high growth provided it strengthens its distribution and sales and marketing team.300.
because the average per capita consumption here of non-alcoholic beverages is considered to be still very low. One is the price. In the case of soft drinks. Fruit drinks also have one more advantage over cola. there is a very good chance of high growth in the volume however tough the competition may be. The reasons are numerous. because rumors of foreign objects found are more frequent in packed fruit juices than in colas irrespective of the veracity of such rumors. they may be supportive of fruit drinks.Sales Management Fruit drinks market is not yet mature enough as that of cola. it is also a bitter fact that fruit juices produced in Nepal are mostly from fruits that are 14 . Fruit drinks are one to four or five rupees costlier than colas. Second. And if the manufacturers of fruit drinks become aware of the tastes and pockets of the consumers and maintain quality and availability of their products. as the former can use the locally produced fruits whereas colas are mainly concentrates that are imported. consumers seem to feel more comfortable with cola than fruit drinks. However. Consumption of any product depends on the country’s overall economic condition and also on the habit of the consumers. Nepali consumers are more used to cola than to fruit drinks. as the estimated growth rates for these products indicate. While the opponents of consumerism may find strong logic against colas. there are still very good opportunities for soft drinks especially fruit drinks industry to expand in Nepal. Whatever the perception of consumers at present.
attitudes and needs in the country in the past couple of years. makes it imperative to give the Rs. The only other 15 .) in thirst-quenchers. today. MAJOR PLAYERS In India. At one level. The natural juices at the roadside juicewallahs could never give consumers the full satisfaction of assured quality and hygiene. the upper end consumer is getting more and more adventurous and experimenting his meal portfolio. therefore. are definitely more health and quality conscious. They are looking for additional attributes (natural. This. the rising income levels have changed the consumption pattern of the rich as well as not so rich.2000 crore fruit juice industry a closer inspection. The reasons for changing trend are not really hard to find. In processed food sector. in comparison the growth rate of juices and nectar sector is phenomenal 30% (Source: Mckinsey Report). the lower end of the middle class is busy emulating the eating habits of the rich by laying greater stress on nourishment and quality while at the other level. as choices increase. Perhaps it is because the industry is still not grown up enough to encourage sufficient fruit production on commercial basis.Sales Management imported. nutrition etc. the inclination towards fruit juices rather than food drinks mark the constant change in habits. While the food drinks market is growing at 10%. People at large.
Onjus. the consultancy outfit advising Enkay Texofoods. ETL with know how from Henschel Export GmbH of Germany. etc. An analysis of the players who call the shots… ENKAY TEXOFOODS INDUSTRIES LTD. Rs. it was quite a giant leap for Enkay to diversify into a completely unrelated .15 crores sales were amounted from Mumbai and Pune alone. Onjus today commands a sales figure of Rs. Life Turnover : Rs. concentrate and later to juices. set up a plant to process guavas. Nestle. was identified the need and hence the market for Natural Fruit Juices. Brands : Onjus. its first launch centres. Unilever. Pepsi. Launched in April 1997. which in itself is a cumbersome process. Thus.Sales Management alternative was extracting juice pulp at home. With the help of Samsika Marketing Consultants. mangoes and bananas into puree.20 crores. a Thyssen group company. in its very first year commanded an astounding 34% market share in the tetrapack juices segment.67 crores For a traditional family run texturised yarn business. ETL is a company of international repute having ISO 9002 certification and supplying processed fruits and pulps to companies like Heinz.food processing – business in the FMCG segment. 16 .
Hommade. Ayurvedic. Dabur Nepal. Capsico. In August 1998. Dabur has also got into a contract with the Himachal Pradesh government to use its packaging facilities for an annual fee. let alone 17 . Life.Sales Management Onjus is the most successful brand of 1999 (Source : Business India). Dabur India tied up with Godrej Foods for the manufacture and packaging of its Real range of fruit juices in tetrapacks. Despite a headstart. It has eight business divisions viz. Health Care. a 100% Dabur India subsidiary took over Himalayan Beverages. a mango-based beverage. this has encouraged the company to launch their second product. Bulk Drugs. Its flagship company Dabur India currently accounts Rs. Natural Gums. Launched in June1996. Excelcia Foods Ltd. And. Personal Care. Pharmaceutical. Real went off-shelves for almost four months owing to quality problems (stock returns of around 30%). EXCELCIA FOODS LTD. Food and Cosmetics. a Nepalese company. is only about a year old. Real failed to create a market of its own.810 crores turnover. For better control over supply.10 crores An equal equity joint-venture between Dabur India and Osem of Italy. Lemoneez Turnover : Rs. Brands : Real. Earlier Real was being sourced from Himalayan Beverages.
18 .Sales Management capture the market of tetrapacks like Frooti.
Real Cranberry.offers the exotic flavour and nutritive value of cranberries.000 retail outlets in 240 cities of India. minerals and antioxidants.Sales Management REAL JUICE More wholesome than fizzy drinks and moro hygienic than what roadside vendors sell. which makes it a healthy beverage. The juice. Real Juice is sold through 80. The brand name to the product is assigned as synonym for naturally. claims an official release. Dabur Foods has launched India’s 1st Cranberry juice – Real Cranberry Nectar in onelitre packs for Rs 75 in the Indian fruit juice segment. as Real Juice contains only fruit pulp and no other added flavour or colour. preservative free fruit juices. Known for its packaged. rich in vitamins. to reteriete the launch spiel. 19 .
guava. mango. litchi and cranberry. mixed fruit. Mumbai. 20 . at the sixth National dairy and Beverage Seminar – ‘Innovation for Growth’. mini-metros like Bangalore. which are an assortment of traditional Indian and International flavours – orange. Pine Apple. cold fill technology and spillproof double seal cap for packaging.00 Real Juice is a fresh. Amritsar and Jalandhar. Real Fruit Juice is India’s first and only packaged Fruit Juice brand to get SGS (Societe Generale de Surveillance) certifications for high safety standards used in packaging that conform to the stringent HACCP and GMP standards. Real Juice is available in four packings of 200 ml. Orange. natural flavoured. The release claims that Dabur Foods’ flagship brand. 100 per cent preservative free fruit juice brand offering consumers the great taste and wholesome nutrition of freshly squeezed juice in a hygienic and attractive pack. Chandigarh and small cities like Ludhiana.Sales Management The product will be offered in four metros . or colour and come in India's first international freshness sealed pour and store packs. 55. The brand has also won the award for ‘Highest sales growth achieved by a brand’ in the non-dairy category. Hyderabad. Tomato. Mix and. specially hand-picked from the finest orchards in Nepal. Today Real Juice marks it's presence in the market with eight flavoursMango.Delhi + NCR. Kolkata and Chennai.. They do not contain any added flavour. Pune. pineapple. The product is packaged in latest spin cap tetra pack. Ahmedabad. 500ml. tomato. Real offers the largest range of fruit juices. and one litre with process ranging from Rs. 250 ml. Real Fruit Juice is a packaged. squeezed from the choicest fruits.00 to Rs. grape. 8.
Sales Management PRODUCT PORTFOLIO ORANGE JUICE MANGO 21 .
Sales Management MIXED FRUIT JUICE GRAPE JUICE 22 .
oranges are hand graded and any fruit that doesn’t meet quality inspections is removed. Oranges have a limited growing season.Sales Management TROPICANA Tropicana works with more than 400 established Florida groves. Once the fruit is picked. an unspecified quantity of juice (some or potentially all) is deaerated and then stored for future packaging in chilled tanks to preserve quality. The aseptic tanks protect the juice from oxygen and light and hold the liquid at optimal temperatures just above freezing to maintain nutrition. and because there is demand for juice year round. Tropicana developed flash pasteurization to minimize the time the orange juice is exposed to heat while providing maximum nutrition and flavor. It has been reported that deaerated juice no longer tastes like oranges. The oranges Tropicana uses for its juices have different ripening seasons and juice stored in aseptic tanks has been stripped of its taste – so some stored juice is blended with fresh juice and a bit of the natural oils found in the orange peel and in the juice are blended in to 23 . and must be supplemented with flavor packs derived from orange oils before consumption . The oranges are then washed and the orange oil is extracted from the peel to capture the from-the-orange taste. which are later blended into the juice for consistent quality and flavor. which are selected for sandy soil conditions and advanced irrigation practices. The oranges are squeezed and the fresh juice is flash pasteurized. Tropicana also uses small quantities of high-quality orange juice from Brazil to supplement the Florida crop. The company is the largest single buyer of Florida fruit and processes about 60 million boxes of fruit.
Sales Management deliver the most consistent tasting juice. depending on the product. Pulp may be blended in at this point. 24 . too. The company’s packaging materials ensure the juice stays fresh inside the package by preventing outside moisture and light from affecting its quality. Tropicana’s carton and plastic packaging are engineered to maintain quality and freshness.
even an open pack can be safely refrigerated for 3-4 days. The company claims that it tastes like fresh orange and has a shelf life of six months. To overcome this hinderance. Dabur India has tied up with Godrej Foods which will pack the Real range of juices in small 200 ml tetrapacks. The Real range of juices includes orange. Also that the product contains no preservatives and is unsweetened. The product contains no preservatives.Sales Management 4 Ps OF MARKETING PRODUCT The Facts: Tropicana is a ‘100% natural orange juice’ in a tetrapack. pineapple and mixed juices. Onjus is available in two sizes – 250 ml and 1 litre. to cut possible confusion. as well as its vegetable variant. oranges of right colour and taste were picked. tomato. At Onjus. mango. Real fruit juices were available and packed in Nepal in 500 ml and 1litre elopack. 25 . apple. Unlike in the West where most orange juice brands are yellow in colour. Recently it introduced a special ‘six pack’ consisting of six 250 ml packs. Only its apple juice was available in small tetrapcks. It is available in both sweetened and unsweetened form. It is made from American Valencia oranges. Indians perceive yellow as being prineapple or sweetlime.
keeping this in mind has ventured into both the variety. However. Onjus can only boast of a single one – orange. The other factors?? 26 . The contrast in sales figure between Onjus and Real therefore seems much to be influenced by the other factors. it however highlights the urgency of implementing stringent quality measures with regard juices. the naturally sweet and the other artificially sweetened. Steps also need to be taken to ensure good juice quality after packaging. a big plus for the Real brand. Also. recently there were allegations of presence of synthetic food colour dyes (above the permitted level). both the brands do not offer much in difference. making it less convenient for individual consumption (Pick it up and have it). It is only available in 500ml and bigger packs. Real. Perhaps keeping this in view Real introduced ‘elopacks’. Indians are known to have a sweet tooth. Onjus unlike Real does not provide a sweetened juice flavour. Barring these differences. This in itself is a major drawback for the brand since it is pitched against Real’s multiflavour variety.Sales Management The Findings: In terms of variety and flavours. Though these allegations were pinned at Onjus. One big major drawback against Real is the absence of small pack sizes. Much as both the brands refer themselves to as completely natural.
44 27 .Sales Management PRICE The Facts: Prices in Rs. BRAND FLAVOUR 200ml Tropicana Orange Orange (Sweetene d) Orange (Unsweete Real ned) Mango Pineapple Apple Mixed Tomato 9 30 30 30 30 25 23 42 QUANTITY 250ml 12 500ml 1ltr.
Onjus scores an edge over Real since it can boast of economical packs available in small sizes. both the companies 28 . the price had to be in a competitive range. mental price barrier.. 57. However. 90. Real. Onjus was sensitively priced similar to 250ml Yo Frooti packs. Taking into account the price sensitivity of Indian consumer. The purpose of it being to establish or even to create a market for its products. . the brands would gain peak sales year after year. has put its different flavours under different price tags keeping in mind the preferred taste of the Indian consumer. Infact even the sweetened and the unsweetened orange juice variety are priced differently. the multiflavoured brands. Though not much different in prices. On its part Onjus came out with a carton of six 250ml packs with a slashed price tag of Rs. the key issue was to make it affordable.Sales Management The Findings: Inorder to create a market for Onjus. The introductory price of Rs. since Real is not available in smaller packs the indian consumer has a mental block towards Real’s prices. 9 per 250 ml pack was safely within 10 Rs. Since it was fighting its battle not just against its predecessor Real but also against the established Frooti etc. However. Real launched its festive carton of four 500ml packs (2 oranges. Both the companies believe that once the consumer try the brands at slashed prices. 1 mixed and 1 tomato) priced at Rs.
29 . non-alchoholic food drinks. it is imperative that the companies try and increase profits by increasing sales volume and reaching economies of scale and not by increasing price tags. Inorder to steal the show from aerated.Sales Management fail to understand the simple truth that consumers in general are no longer brand loyal and are always hunting for ‘value for money’.
Real is sparsely available. Nepal and Bhutan are among the few neighbouring countries to which Onjus is already being exported. wives. For the sole purpose of in-house consumption. convenient packs makes Real less discrete in onpremises outlets like college canteens and roadside stores. As a company policy. teenagers to young adults and family 30 . The management has spared no effort in spreading its distribution from roadside vendors. As a result the company spends more on strengthening its distribution network rather than the promotional aspect. Export offers a major potential for Onjus fruit juices. dhabawallahs. distribution aspects is given precedence over promotional ones. Thus. The Findings: Though both Onjus and Real have done well to elaborate their consumer segment from kids. Positioned as an up- market brands. 1 litre Onjus packs were introduced. Surprisingly. The absence of small. the already existing distribution channels of Dabur India are not being utilised by Real to reach the general masses. distribtuion and logistics posed more of a problem than a solution to this brand. To make matters worse in-transit damages to the packs during carton handling earned the brand a bad name initially. Unlike Tropicana.Sales Management DISTRIBUTION The Facts: Tropicana is aimed at teenagers. mothers and busy executives. young kids. local grocery shops and to super markets. it is available mostly in mid-up market outlets.
Not available makes one more desirable but not in case of a product. Apart from getting its logistics right. In today’s buyer’s market. surprisingly the sales haven’t risen exponentially. Product differenciation and eventually brand loyalty is continuously diminishing in the competitive market of today. if one brand is not available the second conveniently would take its place. Like its counterpart Onjus. because it is they who mark the substantial market. However. Onjus on the other hand made adequate shelf presence right from local shops to the big malls. to its credit Real took note of its in-transit damages and came up with ‘elopack’. Real could not make its presence felt owing to slack distribution network. 31 . The worse was that inspite of being a Dabur brand. As a result services especially as that of distribution and logistics gain crucial importance. it failed to utilise the company’s existing distribution channels to its advantage. Real would do well by not restraining itself to the premium segment alone. eventually sizing up a huge market for itself.Sales Management people. Real thus got branded as a premium product and lost a major chunk of its market share. it needs to reach the popular segment. Inspite of an early launch.
inorder to clinch greatger market share the company is trying to promote Onjus not just as a beverage but also as breakfast. hygienecally packed adjustable straws. 1 crore. it is posed as a convenient pack full of nutritional value. To the upmarket housewife. The promotion never fails to underplay the fact that they are made of the finest Valencia oranges from America. meal compliment or a mix with vodka. The packs come with tamper proof. 57.Sales Management PROMOTION The Facts: Tropicana: ‘Squeeze to Please’ Onjus gives primary emphasis to print media as agianst the electronic one. But all this is set to change this year with an advertising budget of about Rs. barring a few advertising spots. because of its price competitiveness. The company recently introduced a ‘six pack’ carton priced at Rs. ‘Compeletely hygenic’ and ‘value for money’ are the messages being sent across. it is being pitched against roadside juicewallahs. Positioned as a thirst-quencher. Strategy is being worked out 32 . has not really advertised much. the promotional material for Onjus is meant for the ‘label literate’. to communicate it as that ideal for small families and/or as a gift pack. The essence of Real’s promotional work is ‘real’. Real. Real: ‘ Do you believe in real love? There’s nothing artificial about it’. and not the company brand is highlighted. 1 crore advertising budget. Equipped with Rs. Though considered as a premium product. posed as naturally rich in Vitamin C with no preservatives. The product.
The Findings: When a company faces stiff competition from the other. premium image. 33 . it is but impossible for the company to disregard promotion. a fact admitted by both the companies. Especially on electronic media. in the form of outdoors at every nook and corner. fun-loving product while Real poses a much sedate. yet Onjus has made its presence felt as against Real. While comparing the promotional efforts it is evident that Onjus is busy projecting itself as young. This is not simply due to the presence of physical product itself but also because of its promotional material. There being negligible difference in both brand’s advertising budgets. Advertising seems a forelong marketing variable in the agenda of both Onjus and Real. The packaging in itself speaks a lot about the consumers being targetted by the respective companies. Real has also been complacent with regards to point-of – purchase displays. To add variety. Real now even comes in blue packs equipped with screw back-ups.Sales Management with door-to-door sales and sample promos. thereby killing the impulse buy decisions. enthusiastic. the companies have failed to leave a mark on the consumers.
After 13 years of staying lonely at the top would Real be able to build a crowd around Parle Agro’s Frooti. But what Real attempted was to create a market of its own . What the Indian market needs today . what the industry is now trying to do is offer different packaging to suit different price points while simultaneously working on ways to offer better quality and improved taste.is at least a dozen such marketers who would balance superior technology with consumer needs. whichever part of the globe they originate from. these products never got beyond the novelty sales level. Frooti is still unchallenged as a fruit drink. Well yes.Sales Management CONCLUSION Can a company whose business for decades has been spinning yarn create a successful brand out of a fruit juice overnight ? Yes. and no. packaging becomes critical. This low volume. would say the patrons of Real. The market is ever expanding . Price is a barrier to this category because when you give fresh juice. high growth industry sprang into existence three years back and yet the enormous growth potential it showed during this time has enticed many new entrants .both Indian and foreign players . just that what marketers have been trying to sell earlier was often peripheral to the basic Indian diet. So.the market of fresh fruit juices. As a result. 34 .to get anywhere close to the consumers paradise . Much has already been achieved and much is yet to be.
while profit projections are unlikely to go completely haywire just yet. It will continue to be an area of focus. If everything goes the way it should. expanding market and increased consumer preference for healthy foods. with talk of the new government thinking of levying eight per cent excise on food products including packaged fruit juice. A fresh respite it would be .Sales Management With the market growing at a healthy rate and with changing lifestyles and rising levels of health consciousness among consumers today. And a large chunk of this growth will come from the Real brand of fruit juices. since Real contributes as much as 85 per cent to the company's topline. But even as the industry players are upbeat about growth prospects. thanks to product innovation. the demand for healthier products like packaged fruit juice is only going to increase in the times to come. by the year 2007 the juice industry would contribute as much if not industry as aerated drinks today. more to the beverages 35 .. there might have to be some readjustments in the time frame within which these targets may be achieved. Dabur will be a Rs 200-crore company by 2006-07. there is an undercurrent of discomfiture.. So. It took Dabur Foods seven years to make money on fruit juices.
• • • Pack may be made more attractive. I observed that for making the distribution channel smooth transfer of goods. Some sales promotional campaigns may be undertaken involving retailers and customers to push the product. • More hoardings and OTC displays may be placed in order to increase awareness level. • To maintain the profit margin logistic mix should be adopted by the company • • The price can be brought down by cutting the manufacturing cost. More retailers and consumer based schemes should be introduced and special emphasis should be given children based schemes. Consistency of the quality is necessary.Sales Management RECOMMENDATIONS • To promote the product range good consideration should be made to wholesalers and retailers. 36 . The distribution channel should be widened and made more costeffective. • As a researcher. • • More advertisements be placed on TV and Radio. the contribution of middlemen is required. • • More flavour can be added to the product line. In order to attract more attention of potential customers any celebrity can be endorsed. because children mainly consume the fruit juices.
com www. Strategies and Cases.daburfoods.agencyfaqs. Economic Times • • • The Strategist. 2006 Business Today.com www.com 37 . 2008. Business Standard Financial Express Business Line Handbook of Analysis and Quality Control • • • • • A&M www. Sales Management – Decisions. Cundiff.domain-b. 15th September Issue. Govoni.indiatelevision.com www.Sales Management BIBLIOGRAPHY Still.
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