Analysis on Froot

Introducton

Company History

Frooti is Indias first mango drink introduced in 1985 by Chauhan family. in India. They also introduced
Tetra Pak concept in India for first time. Along with that, they are first to unveil PET bottle and TCA tetra
pack.

Current Brand Ambassador

Bollywood 'king' Shah Rukh Khan currently endorses Frooti.

Distributon Areas

Frooti is exported to the United States, Canada, the United Kingdom, the United Arab Emirates, Saudi
Arabia, Malaysia, Maldives, Singapore, Thailand, New Zealand, Australia, Mozambique, Ghana, Malawi,
Zambia, Nigeria, Tanzania, Japan, and Ireland

Packaging

Frooti have the combination of different layers of Plastic, Aluminium, and Paper

Plastic layer waterproof and light

Aluminium layer protects from light odour and oxygen
Paperboard helps the pack to stand up and maintain the shape
Tetra pack 2 layers of paper-enhanced shelf life and prevents tamper-proof
Segmentaton and Targetng
Brands segmentation is broadly divided into two categories:

Primary category: are the children in the age group 4-12 years. These are mainly attracted due to taste
of the Frooti and due to mango juice.

Secondary category: It consists of all the adults who loves mango based drinks carbonated drinks.

TARGETED MARKET

Recreational o Fitness
Health o Lifestyle
Sports

PRIMARY MARKET

KIDS - Fond of fruit juice

TEENS - More experimental
YOUTH- Experimental & more buying power Brand Management of Frooti
Working People
Women
Elderly people

SECONDARY MARKET

Travel Industry- Airlines, Railways & local transport systems

Recreational- Movie Theatre Malls etc.
PSYCHOGRAPHIC: NEW IMPULSE CATEGORY

The youth segment was targeted with sub-segments:

TWEENS (9-12)
TEENAGERS (13-19)

65ml- Targeting Low Income Levels

250ml- Handy Bottle- Targeting Teens as Single Serve
Pet 250ml- Economical & used in canteens, offices and colleges
Frooti Family Size 1Litre Pet- Easy to store in fridge

Well for the generation who is accustomed of cola drinks talking about Frooti is like talking about
childrens stuff at all yet Frooti cannot be credited as children drink as for Frooti has several credit to it
like:

1. First company to introduce tetra pack in 80s

2. Quality consistency assurance
3. Throughout year availability( in those 80s day)
4. Efficient and unmatched distribution channel of Parle

PESTLE Analysis
The Pestle Analysis identifies the political, economic, social, technological, legal and ecological influences
on an organization

1. Politcal factors
Various political factors affect the fruit juice industry. With the change of government the
policies regulating the industry might change. As the taxation policy keeps changing, it has a
significant effect on fruit juice industry.

2. Economic factors: Company would rely on trucks to move our raw materials to the processing
plant and distribute our finished product so, fuel is also an important subject, so the company is
subject to the fuel price fluctuation, and to possible fuel crisis. Since, Frooti is an agro based
industry so it would be exposed to the risks of high prices due to crop failure, non-availability of
raw material because of pest attack etc. Other economic factors affecting fruit juice industry are
often linked to variability in real growth, inflation, interest rates, governmental actions and other
factors. Factors like money supply, energy availability and cost, business cycles, etc. would also
affect our company.

3. Socio-cultural factors: Frooti is more than a billion strong nation and the youngest country as
well. It is also home to the great Indian middle class. The major growth drivers in fruit juice
market are increase in health consciousness among consumers, increase in disposable incomes
and more sophisticated cocktail culture. There is more money circulating in the economy. With
life becoming more hectic and tiring, consumer preferences are witnessing a visible shift towards
 healthy foods. Even the younger generation has started shifting from fizz to fresh and healthy. As
people are becoming more and more educated, they are taking the healthy route.

4. Technological factors
Fruit juices have become big business throughout much of the developed and developing world
with the increasing health conscious proportion of population. In this ever growing industry
technology plays a major role in maintaining the quality and cost efficiency to generate higher
profits. Better technology can increase the shelf life of our product. Technology refers to both
production process as well as machinery.

5. Legal factors
Processed fruit juices are regulated under the Food and Drugs Act and Regulations as a food
product and the Consumer Packaging and Labelling Act. The Food and Drugs Act creates identity
standards, provides a basis for labelling requirements and establishes the safety parameters for
soft drinks. As food safety requirements become more advanced across the beverage industry,
tracking and traceability capabilities are a prerequisite.

SWOT Analysis
Strength:

1. Innovative - First packaged Mango drink in Indian market, first to introduce Tetra pack, PET
bottle packaging.
2. Quick market responder - Introduced 65 ml packaging to cater different segments.
3. Frooti has got a very large quantity basket - available in various quantities like 65 ml, 200 ml,
250 ml, 500 ml and 1 Litre.
4. Efficient distribution network-readily available.
5. Frooti is a health drink - Contains Vitamin A.
6. Frooti has got a strong Brand Equity.
7. Returnable glass bottles

Weakness:

1. Frooti is not perceived as a health drink. As per our survey majority of our respondent didnt
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. The main target audience of Frooti is kids.
5. Small business units

Opportunites:

1. Growing economy
2. Global markets
3. New markets
Threats:

1. Decreasing share in NCSD category - Fruit juice segment consisting of Real and Tropicana is
increasing at the rate of 20- 25% per annum as compared to sluggish growth in other
segment.
2. Presence of huge unorganized market.
3. High consumer preference for flavours other than mango and green mango.
4. Competition with global giants - Coke and Pepsi.
5. Rising cost of raw materials
6. Technological problems
7. Financial capacity
8. Increase in labour costs
9. Growing competition and lower profitability
10. Increasing rates of interest
11. Tax changes
12. Price changes

Market Analysis
1. Frooti has emerged the country's second most popular mango drink, outselling PepsiCo's Slice in
the last quarter
2. Frooti had a share of 25.6% in India's Rs 6,300-crore mango drink category against Slice's 23.4%
in the quarter ended March
3. Frooti improved its market share by 160 basis points in one year, entirely from Slice

4. Frooti grew its sales 12% last year even as the category growth rate was just 1%
 5. RGB (Returnable glass bottles) accounts for 48% of mango drink category sale while PET has
grown to 34%

Gap or Opportunity in Froot

Frooti have lost considerable franchise in the critical 'youth constituency'. And their advertising isn't
helping either.

Fact is, today, Frooti have lost considerable franchise. In the critical 'youth constituency' - where image is
everything - Frooti have been out-shouted by the Cokes and Pepsis of the world. And competition has
multiplied.

The hugely suspenseful (and some insist, anti-climactic) run-up to the Digen Verma campaign consumed
a lot of interest. And although opinion was divided about the effectiveness of the campaign, there is no
denying that it created a buzz for the brand while it lasted.
Unfortunately for Frooti, the buzz didn't last. Around the time the Digen campaign broke, Ram Sehgal
(then managing director, Everest Integrated Communications), in an interview with agencyfaqs!, had
revealed that the entire Digen Verma campaign had been planned for "the next 18 months". He had
spoken about how the agency had anticipated a degree of consumer disappointment once Digen's
'identity' was revealed, and how "the next phase of the campaign, which will soon unfold will take care
of the disappointment."
That next phase never happened. In fact, Frooti's advertising is back to the old 'Mango Frooti, fresh and
juicy' message, with mango juice and Frooti packs holding centrestage. Of course, insiders at Everest
reveal that the current advertising for the brand is more "stop-gap", but admit that Digen Verma is over,
never to be resurrected.

About two years ago, Parle had roped in actor Shah Rukh Khan as Frooti's first celebrity ambassador ever
and focussed more on PET bottles (bottles made of polyethylene terephthalate) as part of a strategy to
woo both children and adults. "The entire communication was designed to ensure we strike a balance
towards retaining our large kid consumer base, but building massive appeal amongst the older
consumers and subsequently gain greater market share," said Nadia Chauhan, joint managing director at
parle agro

Parle Agro three years ago launched Frooti in returnable glass bottles (RGB) to challenge the dominance
of Coca-Cola's Maaza which gets more than half its sales through glass bottled packs primarily sold at
hotels and restaurants where Frooti wasn't generally available. "Non availability in RGB format made us
lose share to our competition," Chauhan said.

A year ago Vadodara-based Manpasand Beverages, makers of fourth largest mango drink brand Mango
Sip, raised nearly Rs 400 crore through its initial public offering to increase distribution and modernize its
facilities.

Experts say marketers need to innovate within the mango category as they seem averse to launch new
flavors. "In no other market across the globe does one single flavor contribute 80% of business and that's
leading to erosion of pricing power and lesser margins," said ..
Frooti is that it isnt perceived as a health drink in spite of being Vitamin A rich. It is perceived as a drink
for kids. However off late, as mentioned above, frooti has being trying to reposition itself as a refreshing
drink.
Frooti has for years been synonymous to mango fruit juice. And Parle has been very smart with this
strategy. Instead of introducing new flavors in Frooti, Parle came up with Appy Fizz to introduce an Apple
and later a Grape fruit Juice. Parle understands very well that introducing a new flavor under Frooti will
affect its dominance in Mango Fruit Juice market. Hence the scope of Brand extension has been
restricted by Parle but the same has not been left untapped as well.

There is a rise in health consciousness among people. Carbonated drinks are not looked at upon with
much enthusiasm after repeated controversies in which carbonated drinks have been into like the
pesticide etc. There is a vacancy created in the soft drinks market which has given fruit juice markets to
expand.
Fruit drink market is set to grow with increased demand of packed products and changing Indian society
into an urban one.
Frooti has tried to reposition itself in recent years as a refreshment drink but then there is a good
opportunity for it to also project itself as a health drink. Frooti should grab up this opportunity.

Segments - "Segmenting" is a marketing term for dividing up your audience into groups according to
particular criteria. The members of each group have at least one important factor in common with the
other members of the same group, and that factor sets them apart from all the other groups.
Can consumers behavior be analyzed? Are the segments accessible? Do the segments differ? Can
profits be made? Is there fair competition? All these questions arise when deciding on segmenting the
market

For Market segments to be viable they must be:

Measurable: Characteristics and needs of consumers can be measurable

Accessible: If Bharti Del Monte. has the necessary resources.

Substantal: The segment should be large enough so that profit can still be made in the long
run.

Differentable: Each Segment should differ in terms of responsiveness to any marketing mix
elements like price.

Actonable: There should be fair competition and effective programs can be formulated for
attracting and serving the market.

Segmentaton of the consumer market can be done through:

Geographic
 Psychographic

Behavioral

Demographic

Geographic segmentaton

Segmenting the market in respect of nations, regions, city, density and neighborhood.

The market of fruit juice can be segmented by density as all regions differ in the number of
customers.

Psychographic Segmentaton

Market is segmented on the basis of lifestyle, personality, and values.

Lifestyles segmentation is partly based whether consumers are time or money constrained.

Personality segmentation consists of the characteristics of the consumer, such as being extrovert
or introvert, authoritarian, ambitious and brand personality.

Marketers can also segment the market through core values, such as beliefs, attitude and
behavior.

Psychographic Segmentation of the fruit juice market can be done as the brand Bharti has much
influenced in lifestyles and personality of consumer. On the other hand, it is risky as India has a rapid
changing lifestyle and that people are given more value to money to be influence through personality
and values.

Behavioral Segmentaton

The market is segmented based on consumer knowledge, attitude toward use of or response to
a product.
 Behavioral variables are occasions, benefits, user status, usage rate, loyalty status, buyer
readiness stage and attitude.

Occasions can be used to distinguish consumers when they develop a need, purchase or use of
a product.

Benefits segmentation deals with segmenting market as per what benefit consumers seek.

User status also can be used by determining the type of user consumers on that market, are like
non-users, ex-user, potential user, first time user and regular user

Demographic Segmentaton

The market is segmented on the basis of variables like Age and Life-stage, family life cycle,
gender, income, occupation, education, religion, race, generation, nationality and social class.

Age and life-Stage segmentation deals with segmenting the market by age group like people
less than 14.

Family life cycle segmentation provide for the market to be segmented into segments that are
related to the change in pattern of consumption as a person passes the life cycle like adolescent
to young adult or bachelor to married person.

Gender segmentation in to segment the market in term of sex whether male or female.

Income, education and Occupation segmentation deals with the segmentation of the market by
the salary earned, level of education and work of the customers.

Religion, race, generation, nationality, and social class segmentation segments the market into
group of customers having specific social background.