Gauging the Consumption Pattern of Juices

EXECUTIVE SUMMARY
Soft Drinks were common preference among all the individuals before juices were being introduced, with the changing lifestyle and income levels, people are shifting their consumption patterns and have therefore become more health conscious thus leading to increase in demand of juices. Market Research is based on some underlying parameters like: Health factor Impact of advertisement on purchase of juices Frequency of consuming juices Attitude towards canned juices

The basic subject matter of the research is to analyze the consumption pattern of the juices among the consumers. This study starts with the comparison of two major brands of juices popular these days. These brands are Real juices and Tropicana juices. In this study, the main focus is to gauge the behavior of consumers towards the readily available juices- whether they feel the canned juices are healthy and fresh; when they like to consume such branded juices and so on.

Gauging the Consumption Pattern of Juices

Introduction

Global Juice Industry

The global juices industry reach a worth of almost $84 billion in 2010, after recording yearly growth in excess of 2% for the four preceding years, reports MarketLine. Overall, 100% fruit juice represented the leading market segment, with close to $26 billion in 2010, representing more than 30% of the overall market in terms of value. Market growth is expected to slow to a yearly rate of less than 2% between 2010 and 2015, when it should exceed $92 billion.

The fruit juice market competes with other beverage markets such as ready-to-drink, bottled water, herbal drinks, energy drinks and sports drinks. Juice consumption recorded strong sales in developed and developing markets in the face of the economic recession, reports Global Industry Analysts. Demand for juices, and fruit juices in particular, continues to rise mainly due to increasing consumer awareness of the health benefits of a balanced diet.

Indian Juice Industry The juice market in India has been growing steadily and with the increase in health conscious consumers, the market is expected to get a boost. Among the major segments in the market namely fruit drinks, nectar and 100 percent fruit juice, the fruit drinks market accounts for the maximum market share. The rising consumption of packaged products reflects the demand for the organized juice market. The major drivers have been identified and include the rise in health conscious consumers, growing modern trade as well as rising disposable income. Indian consumers are becoming aware regarding the health benefits associated with products such as juice. In addition, the rising disposable income driven by a developing economy is allowing individuals to meet their nutritional requirements through products such as juices. Furthermore, the growth in modern retail has allowed consumers access to a wide variety of products manufactured by a whole host of players. The availability of such products has created strong opportunity for players to capitalize upon by catering to a larger audience. The market has observed some challenges which
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Gauging the Consumption Pattern of Juices

include price rise, existing perception against packaged juice as well as the lack of variation and fluctuation in quality. Due to the rising prices of basic inputs, players have been forced to increase prices gradually. This coupled with the fact that consumers are more inclined towards fresh juice against packaged juices, which my contain preservatives, has negatively impacted the market. Players find it extremely difficult to differentiate their products from their closest competitors which translate into high marketing budgets towards creating awareness regarding their products.

New flavors and variants, expansion, adoption of new strategies and advent of juice bars are some of the major trends that have been identified. In order to differentiate their products, players are looking to provide new flavours of juices. They have started focusing on packaging of their products as well as looked to offer juices in various pack sizes at varying price points towards gaining a larger market share. Companies are constantly looking to adopt new strategies towards increasing sales. The strategies adopted can range from revamping the distribution channel to launching new products. Juice bars have been rising in India towards tapping consumers against packaged juice products and are providing such consumers fresh juice created in a hygienic environment at competitive prices.

The section on government policy highlights the regulation and control, fiscal policy and taxation, export promotion initiatives adopted by them impacting the juice market.

The competition section provides an introduction to the competitive landscape including the market share of major players as well as a product matrix. It also offers a brief profile of the major players including business highlights and financial data towards providing an insight into the competition scenario in the market.

Gauging the Consumption Pattern of Juices

Ral Juices
Ral has been the preferred choice of consumers when it comes to packaged fruit juices, which is what makes India's No. 1 Fruit Juice brand. A validation of this success is that Ral has been awarded Indias Most Trusted Brand status for four years in a row. Today, Ral has a range of 14 exciting variants - from the exotic Indian Mango, Mausambi, Guava & Litchi to international favourites like Pomegranate, Tomato, Cranberry, Peach, Blackcurrant & Grape and the basic Orange, Pineapple, Apple & Mixed Fruit. This large range helps cater different needs and occasions and has helped Ral maintain its dominant market share. A research conducted by Blackstone Market Facts even pointed out that Ral was preferred by over 50% of the respondents. Whats more, Ral was liked for being the better tasting juice - a category where likeability is primarily driven by taste. Made from best quality fruits, Ral does not have artificial flavours and preservatives, and offer your kids not just great taste, but also FRUIT POWER - the power of fruits the power to stay ahead. Loaded with the power of Vitamin C, Ral fruit juices have all the necessary nutrients that keep you active all day long. Ral is endorsed by PFNDAI The nutritional contents of Ral Fruit Juices & Nectars are endorsed by PFNDAI -- Protein Foods & Nutrition development Association of India. Protein Foods Association has been in existence for about forty years. It has gained credibility in health and food professionals such as physicians, nutritionists, dieticians, food scientists and technologists, etc. as an unbiased body, almost of the stature of an NGO. Even government officials have high regards for the association. So when the association lends its logo to any product, the product is accepted by them to deliver the nutritional contents as claimed by the manufacturer.

Gauging the Consumption Pattern of Juices

Accolades for Ral India's No. 1 Fruit Juice brand Voted as a Superbrand Voted by consumers as the most trusted fruit juice brand for four years in a row Ral awarded the Readers Digest Trusted Brand Gold Award 2009 in the food and beverages category

Tropicana Juices
Tropicana was founded in Bradenton, Florida, USA, in 1947. It is now enjoyed almost everywhere in the world. Carefully nurtured for over 50 years, Tropicana has matured into one of the most respected beverage brands. Tropicana is the #1 brand in packaged 100% Juice* in the world in 2011 in off-trade volume. It is today available in 63 countries. Since 1998, Tropicana has been owned by PepsiCo, Inc. Tropicana Premium Gold was re-launched as Tropicana 100% in 2008. Brand Advantage Tropicana continues to select the best fruit to manufacture high-quality juices and original products, pioneer innovative processes and explore new markets for its products. It is committed to fostering healthy lifestyles by ensuring that its products are naturally nutritious and provide the daily benefits that one needs. In India, Tropicana comes in two categories: 100% Juices (sold as Tropicana 100%) and Juice Beverages (sold as Tropicana). Quick Brand Facts

Launched in India in 2004. Available in two categories - 100 percent juice and juice-based drinks.

Gauging the Consumption Pattern of Juices

Variants of Tropicana Juices Orangede Peach orchade punch Berry punch Tropical punch Fruit punch Apple punch Lemonade Grape

Gauging the Consumption Pattern of Juices

Research Methodology
Research Objectives: The objectives of this research study are the following: Finding the most preferred brand of juices among Real and Tropicana. Finding the attitude of consumers towards canned juices. Effect of advertisement on the purchase of readily available juices.

Research Design: In this study, Descriptive design has been selected for the research because it describes the pattern adopted by the consumers to consume juices.

Sampling Technique: Convenient sampling technique has been used due to the time and cost limitations.

Sample Size: 50 respondents were surveyed.

Sampling Frame: North and East Delhi

Data Collection: Primary data collection using questionnaires and Secondary data collection using consumer reviews through Internet.

Gauging the Consumption Pattern of Juices

Data Analysis
Q1) Which juice do you prefer to drink?

JUICES Real juice Tropicana Others Total

Number of respondents 21 17 12 50

Percentage 42% 34% 24% 100%

NO. OF RESPONDENTS

OTHERS 24%

REAL 42%

TROPICANA 34%

Real is the leading brand as out of 50 repondents, 21 (42%) prefer Real juices whereas 34% prefer Tropicana and only 24% prefer other brands of juices like Maaza, Slice, etc.

Gauging the Consumption Pattern of Juices Q2) What is frequency of consumption of your preferred juice?

Real Juice a) Daily b) Weekly c) Fortnightly d) Monthly e) Rarely 9 6 2 2 2

Tropicana Juice 7 5 3 2 1

Other 4 2 2 1 2

e) Rarely d) Monthly Other c) Fortnightly b) Weekly a) Daily 0 2 4 6 8 10 Tropicana Juice Real Juice

It can be easily interpreted from the above figure that most of the respondents consume juices on a daily basis. Real juice is again leading as out of 20 daily juice consumers, 9 are consuming Real juices and 7 are consuming Tropicana.

Gauging the Consumption Pattern of Juices Q3) On what occasions do you often consume the fruit juice?

Real Juice a) Feeling thirsty b) During parties c)Without reason 8 8

Tropicana Juice 6 3 7

Other 4 1 4

any 9

25 20 15 10 5 0 Real Juice Tropicana Juice Other c)Without any reason b) During parties a) Feeling thirsty

20 out of 50 respondents consume caned juices without any reason whereas 18 are consuming while they feel thirsty and remaining consume during parties.

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Gauging the Consumption Pattern of Juices

Q4) How do you view canned juices as compared to fresh juices?

ATTRIBUTES As good as fresh juice Have artificial added flavour Healthy Contains preservatives

RATING 12 10 20 8

Comparitive attributes
20 15 10 5 0 As good as fresh juice Have artificial added flavour Healthy Contains preservatives

Figure shows that most of the respondents view canned juices as healthy drink and a very less consumers view such juices as preservatives containing drinks.

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Gauging the Consumption Pattern of Juices

Q5) How do you view fruit juice? Real Juice a) As a healthy drink 11 Tropicana Juice 10 3 Other 5 2

b) As a substitute to 5 real fruits c) As an aid to put off 3 thirst d) Easily available 4

fruit drink

d) Easily available fruit drink

c) As an aid to put off thirst b) As a substitute to real fruits a) As a healthy drink 0 2 4 6 8 10 12

Other Tropicana Juice Real Juice

Again it is clear that most of the respondents view juices as a healthy drink. Real juices and Topicana juices both are viewed as healthy drink whereas only Real juice is consumed as a substitute to real juices.

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Gauging the Consumption Pattern of Juices

Q6) Now-a-days, more varieties are available in juices. According to you, which brand is having more varieties?

JUICES Real juice Tropicana Others Total

Number of respondents 26 14 10 50

Percentage 52% 28% 20% 100

Number of respondents
0%

Real juice 26% Total 50% 0% Tropicana 14% 0% Others 10% 0%

Respondents think that Real juices are having more varieties than Tropicana and other juices.

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Gauging the Consumption Pattern of Juices

Q7) Do advertisements affect your purchase?

YES NO

27 23

NO

23

YES

27

27 out of 50 respondents said that they are influenced by the advertisements while purchasing juices.

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Gauging the Consumption Pattern of Juices

Q8) Which brands advertisement attracts you more?

JUICES Real juice Tropicana Others Total

Number of respondents 25 11 14 50

Percentage 50% 22% 28% 100

Others 14

Real Juices 25

Tropicana Juice 11

50% respondents are attracted through the advertisements of Real Juices whereas 14% are attracted through the advertisements of Other juices like slice, frooti, etc.

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Gauging the Consumption Pattern of Juices

Q9) Which brand of juices is having better and attractive packaging?

JUICES Real juice Tropicana Others Total

Number of respondents 16 21 13 50

Others 13 Real Juice 16

Tropicana 21

Most of the respondents (21) are attracted by the packaging of Tropicana Juices whereas only 16 are attracted by the packaging of Real juices and only 13 respondents are attracted by the packaging of other juices.

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Gauging the Consumption Pattern of Juices

Q10) According to you, which brands juice is more affordable?

REAL JUICE TROPICANA JUICE OTHERS

25 12 13

50% 24% 26%

AFFORDABILITY OF JUICES
OTHERS 26% REAL JUICE 50% TROPICANA JUICE 24%

50% respondents say that Real juices are more affordable than other juices whereas 24% says that Tropicana is more affordable and only 26% says that other juices are affordable than these two.

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Gauging the Consumption Pattern of Juices

Findings

1. 2. 3. 4. 5. 6. 7. 8. 9.

Real juice is the most preferred juice which is preferred by 42% respondents. Most of the respondents view canned juices as a healthy drink. Both Real and Tropicana are viewed as healthy drinks. 20 out of 50 respondents consume juices without any reason and 18 while they feel thirsty. 52% respondents say that Real juices are having more varieties of juices than other juices. 54% respondents are influenced by the advertisements while purchasing fruit juice. Most of the respondents are attracted by the advertisements of real juices. 42% respondents say that Tropicana juices are having more attractive packaging. 50% respondents say that Real juices are more affordable than other juices.

Conclusion

Real is the leading brand in juices. People feel it is a healthy fruit drink which is available in more varieties. There is no reason of consuming fruit juices in most of the cases. In some cases canned juices are consumed at the time when people feel thirsty. So, canned fruit juices are an aid to put off thirst. Advertisement affects the purchase of juices. Real juices are having more attracting advertisements.

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Gauging the Consumption Pattern of Juices

Bibliography
http://www.reportlinker.com/ci02021/Juice.html http://www.marketresearch.com/Netscribes-India-Pvt-Ltd-v3676/Juice-India-6654878/ http://www.dabur.com/Products-Foods-About%20Real1 http://pepsicoindia.co.in/brands/tropicana.html

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