Frooti case analysis

The Components of the re-launch strategy of ParleAgro for Frooti:➢

Extensive market research: - The first thing that Parle-Agro did was conducting detailed market survey. It gave lots of information about the competitors’ strategies, customer base and psychology and attitudes of the customers towards their products. Defining product category: - Parle defined its product category as the need satisfying category which quenches the thirst and fun to drink. The product form was fruit juice with competitors’ in the juice category like Tropicana, Jumpin and soft drinks like Coca-Cola, Pepsi and others. Define the target audience: - The youth segment was targeted with sub-segments Pre-teens (9-12), Teenagers (12-15), above teenagers (16-19) which are the new impulse category. The sporty and fun-loving nature of the teens and their hung-out likings were taken into account. Knowledge about the competitor: - Frooti identified the perception of the consumers towards the competitors drink and found that Coca-Cola and Pepsi are soft drinks for youth. It found the vacancy for a soft drink meant for the youngsters and break through the earlier image of Frooti ultimately convince the youth that it was a better alternative than Colas. Differentiation and communication: - Frooti was planning to come up as a fruit drink for youth meant for hang-out purposes. Plan of action for the 4 P’s of marketing-

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Product- The product will be Tetra-pack Frooti, easy to drink Packaging-The pack had new splash graphics in same signature green & orange colours with Flip top and tagline was changed to ‘Frooti-Just like that’. Place- The typical college going crowd hung out at the canteens, Bus-stops, local trains, restaurants etc. so the promotions are to be extensively carried out in these locations as a part of which many popular teenage joints such as restaurants, movie theatres, buses and local trains were flooded with catchy posters asking ‘Where can you find Digen Verma on Saturday nights?’ or ‘What is Digen Verma’s favourite serial?’ etc. Promotion:- The promotion was done using a national identity ‘Digen Verma’ who was some sort of a role model whom others could relate to. The campaign was highly innovative and creative so it build a hype over the mysterious character. The campaign included Television commercials, outdoor media campaigns, offline promotions and online advertising campaigns.

Rationale behind the ‘Digen Verma’ campaign:The rationale behind this campaign was very effective, it is as follows:➢

Create hype in the market- the teaser campaign stirred tremendous interest and build hype around the brandambassador as a result a lot of movement was created around the brand . Somewhat unusual- Something mysterious always captures the attention of the people, so to draw the attention of the young crowd towards the long-forgotten Frooti, Digen Verma was presented as a role model. Inconsistent image of the celebrities- The image of a celebrity is always short-lived so there are chances that it

might fade away with time and the brand also gets out of the sight of the people. Mass appeal- To have mass appeal to the audience the character should be ubiquitous enough, he had to lead a life that normal consumers could relate to and the storyline had to be powerful enough to sustain interest. Digen Verma had all this in him so it received a favourable response from many parts of India.

Success of a brand is dependent on many factors besides the promotional campaign:•

The campaign had been successful in not just evoking interest but also in increasing sales.The customer awareness of brand which it was likely to capture seemed quite phenomenal. The sales were up by almost 30% by investing 30 million on campaign. But somewhere it seemed that Digen Verma was becoming more popular than the product itself, defying the very strategy.

The success of a brand is dependent on factors which could be categorized into two segments- controllable and non-controllable. The controllable factors are•

Operation/ Production consist of the issues like quality of production, improving high productivity, capacity of production etc. Frooti has to be a quality drink with improved productivity level so that its operational costs were quite low. Marketing(Product Mix, Price, Place, Promotion) has into it factors like need satisfying, quality of product, variants of product, packaging, pack imagery, competitive price, distributors and retailers margin and availability. Frooti as a successful brand should satisfy as a refreshing drink, taste as real mango, available in different pack size and its pack imagery should act as a catalyst for youth segments. Its

price should be affordable & comparable with competitors, providing margin and delivered on time. HR/ Finance Department have issues of trained employees and cost minimization. The production cost should be minimized to increase the % of profit to achieve sound profitability in the business.

The non-controllable factors are Political-Economic-Legal, SocioCultural, Demographic, Physical- Natural, Technological, Customer & Market, Competitors & Industry( Direct and Indirect competition, organized and unorganized sectors). To avoid these Frooti should be an ethical product, fulfilling all the quality certification. Frooti as a youth drink in the market will face direct completion from Coke & Pepsi and indirect competition from Fruit juices, Sugarcane juice etc.

Akanks ha Chauhan MBA-II year

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