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SUBMITTED TO: Prof. Ashwin Bhatia SUBMITTED BY: Abhishek Pathak Aparna Srivastava Faraz Khan Kapil Dev Agrawal Rahul Pandey Shubam Sharma Saravjeet Singh
It is our privilege to take the opportunity to thanks all those who have directly or indirectly helped us in the completion of this present Project work. We are delighted to thanks Prof. Ashwin Bhatia for his able guidance, constructive criticism and generous help throughout project. We would also like to express our appreciation for the encouragement and direct assistance, excellent cooperation, valuable suggestion and help given by him at every step of our project. Words fail to express our humble gratitude and profound regards to our Parents for their affectionate encouragement and blessing which always being a source of inspiration for me without which, it could not have been possible to achieve the objective.
COMPANY PROFILE PARLE AGRO PVT. LTD. MISSION: “To provide consumers superior, wholesome agro based food and drink bands through which Parle can build a profitable; growth oriented organization.” Parlet is a leading Indian Food and Beverage Company, the only Indian transnational giant w ith the past experience of having successfully launched leading soft drink brands like “Frooti, Apply, N - Joi and Bailley”. Today its brand portfolio consists of No. 1 brands like Frooti along with Apply, N-Joi and Bailley. Parle agro was the first to ide ntify the dormant mango segment in India and launch India‟s first national Mango drink - Frooti Mango. Today, the Parle Group turnover is over Rs.600 crore with a group strength of over 1000 employees, including over 400 professionals.
PRODUCTS 1. 2. 3. 4. FROOTI BAILLEY AQUA N-JOI 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 INDUSTRY IN INDIA AN OVERVIEW: The non-carbonated SOFT DRINK (NCSD) sector can be classified as Fruit drinks, Nectar and Juices. The classification is based on the percentage of the fruit pulp content in the beverage. Fruit drink has to have minimum fruit pulp content of 10%, while Nectar needs to have a minimum fruit pulp content of 25%. The total size of the branded non carbonated beverages in the organized segment is estimated at Rs.500 crores. The Fruit drink segment is estimated at Rs.250 -300 crores, while the Juice market (Bran ded & Packaged) is estimated at Rs 150 crores. Nectar is a small category of around Rs 35 -50 crores. In the fruit drink
category, Parle‟s Frooti, Godrej‟s Jumpin and Coca -Cola‟s Maaza and Pepsi‟s Slice are the major brands. In the Nectar segment, the key national players are - Dabur, Godrej Xs and Parle‟s Appy. The two key national level players in the juice segment are Tropicana and Real. Real is the market leader with 55 -60% market share. Tropicana has an estimated share of 30-35%. Several local / region al brands also exist, besides a huge unorganized sector. The Juice category is the fastest growing segment at present, estimated to be growing by 20 -25% p.a. The fruit drinks category has also been witnessing growth of around 5% p.a. The main reason for this growth in the NCSD Category is the change of the consumer preference from the carbonated to the non -carbonated soft drink sector mainly due to increasing Health Awareness among consumers and the Pesticide issue relating to Coke and Pepsi. In the Fruit D rink segment, Frooti is the clear market leader with around 85% market share but in the NCSD category as a whole, its share has been declining because of the growth in Fruit Juice segment.So, with the growth of the NCSD category,
Frooti has to compete with all the segments in this category to take a larger share of this growth.
Non-Carbonated Soft Drink
Major Players Real Tropicana
Major Players Frooti Jumpin Slice Maaza
Major Players Appy X‟s
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
Marketing decisions generally fall into the following four controllable categories:-
1. Product 2. Price 3. Place (distribution) 4. Promotion
The term “marketing mix” became popularized after Neil H. Borden published his 1964 article, The Concept of the Marketing Mix. Borden began using the term in his teaching in the late 1940‟s after James Cul liton had described the marketing manager as a “mixer of ingredients”. The ingredients in Borden‟s marketing mix included product planning,
pricing, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding and analysis‟. Jerome McCarthy later grouped these ingredients into the four categories that today are known as the 4 P‟s of marketing, Product, price, place and promotion. These four P‟s are the parameters that the mar keting manager can control, subject to the internal and external constraints of the marketing
environment. The goal is to make decisions that center the four P‟s on the customers in the target market in order to create perceived value and generate a positive response.
PRODUCT DECISIONS: The term “product” refers to tangible, physical products as well as services. Here are some examples of the product decisions to be made: 1. Brand name 2. Functionality 3. Styling 4. Quality 5. Safety 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).
Frooti is available in following quantities: 65 ml (only Tetra pack packaging) 200 ml (only Tetra pack packaging) 250 ml 500 ml (only PET Bottle) 1000 ml (only PET Bottle)
Hence, we can see that Frooti has got a very large quantity basket.
PRICE DECISIONS: Some examples of pricing decisions to be made include: 1. Pricing strategy (skim, penetration, etc) 2. Suggested retail price 3. Volume discounts and wholesale pricing 4. Cash and early payment discounts 5. Seasonal pricing 6. Bundling 7. Price flexibility 8. Price discrimination
PRICE: TETRA PACK PACKAGING QUANTITY 65 ml 165 ml 200 ml PRICE (Rs.) 2.50 10.00 12.00
PET BOTTLE PACKAGING QUANTITY 220 ml 600 ml 1000 ml PRICE (Rs.) 15.00 25.00 40.00
In order to maintain its position as a market leader, Frooti is offering its product in different quantities and prices depending upon the consumer requirements, preferences and income -levels. As we can see from the above table, Frooti‟s n ew 65 ml packaging is priced at Rs 2.50 only, targeting the lower income -group and it has also been introduced in PET bottle packaging as it is more cost -effective as compared to Tetra-pack packaging to become more competitive in the market.
DISTRIBUTION (PLACE) DECISIONS: Distribution is about getting the products to the customer. Some examples of distribution decisions include: 1. Distribution channels 2. Market coverage (inclusive, selective, or exclusive distribution) 3. Specific channel members 4. Inventory management 5. Warehousing 6. Distribution centers 7. Order processing 8. Transportation 9. Reverse logistics
PLACE: Frooti is the highest distributed brand in Fruit drink segment with an 85% market share in India. Frooti reaches more than 10 lakh retail outlets through more than 1500 distributors and wholesalers directly and indirectly. This is borne out by Parle Agro winning the Beverage Industry award for the Best Managed Supply Chain 2002 and the Highest Retail Availability in the year 2002 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 Q-1 Do you drink soft drink? A) Yes – 92%
FINDINGS Most of the respondent prefer soft drink.
Q-2 If yes, then which soft drink? a) Carbonated drink- 64% b) Fruit drinks- 36%
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%
FINDINGS 70% (35) of respondent want to have some new flavor of innovation in the product.
Q-5 If yes, which flavor? Orange-44% Pine apple-16% Mix fruit- 24% Others- 16%
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?
FINDINGS 76% of respondent prefer frooti for taste and thirst and only 24% believe its good for the health. Q-7 Is Frooti a child drink ? a) Yes-54% b) No-44%
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%
FINDINGS As per respondent frooti not easily available.
Q-9 Do you think advertising influence you to drink Frooti ? a) Yes 16% b) No 84%
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.
Q-12 Which quantity does you prefers most? a) 65 ML-12% b) 165 ML-24% c) 500 ML-40% d) 1000 ML-24%
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%
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
Advertisement is basically very much kids and mango oriented and there is no brand ambassador for frooti so far. 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
Weak Distribution channel in interiors (rural) area Low Margin for distributors and also they don’t provide them frooti accessories like freeze, big hoardings & frooti stands.
No brand expansion, brand equity is not utilize properly
Frooti is not persuade as health drink according to our survey it’s has image of simply mango drink.
Failure of YO! Frooti…… it was launched in keeping the mind youth.
The overall evaluation of a one‟s strengths, weaknesses, opportunities and threats is called SWOT analysis. STRENGTHS OF FROOTI:
1. Market leader in NCSD category -60% market share. 2. Innovative - First packaged Mango drink in Indian market, first to introduce Tetra pack, PET bottle packaging in NCSD category. 3. Quick market responder - Introduced 65 ml packaging to cater different segments. 4. Frooti has got a very large quantity basket - available in various quantities like 65 ml, 200 ml, 250 ml, 500 ml and 1 Li tre.. 5. Frooti has got a strong Brand Equity.
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 1. Huge untapped unorganized sector in NCSD category. 2. Huge untapped mar ket in other flavours - Orange, Pineapples, Grape. 3. Growing market share of NCSD category. 4. Demographically, in the coming years around 55% of the population will consist of below 35 years in age, which market for Frooti. 5. Increasing health awareness among consumers - As per our survey 88% of the respondents preferred fruit drink to carbonated drink. THREATS FOR FROOTI should be major target
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 unor ganized market. 3. High consumer preference for flavours other than mango and green mango. 4. Competition with global giants - Coke and Pepsi.
RECOMMENDATIONS FOR FROOTI ON THE BASIS OF MARKETING MIX PRODUCT Frooti in Others Flavours: 1. As per our survey, 70% of the respondents want Frooti in flavours other than mango like Orange, Pineapple and mix fruit . 2. Our main competitor Real is available in many flavours like Mango, Orange, Guava, Grape, A pple, Pineapple and mix fruit etc. 3. So, to compete with Real and other competitors, the present variants of Frooti in orange, pineapple and strawberry flavour should be made available all over India. 4. Frooti should also be made available in grape flavour as there is a great demand for this f lavour, especially in the under 20 age -group segment. 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:
1. Frooti is needed to be promoted as a health drink and should target not only the kids but also the other members of the family. 2. For this Frooti should project its brand ambassador who will help consumers perceive it as a health drink. 3. The Brand ambassador should be someone who symbolizes good health and along with him / her a cartoon character (someone very popular among kids) shoul d also be introduced so that Frooti does not loses its current ta rget audience -kids. SUGGESTION: 1. Frooti can go for Salman Khan as a brand ambassador as he is very popular in India and symbolizes good health. (Punch line can be something like “pyaas wahi bhukh nayi ”) Along with him, Frooti should also go for a famous cartoon. 2. Character like Scooby doo or Popeye to target the kids and both of them should feature together in the advertisement. 3. Should reposition it in market as healthy drink. 4. Frooti should make a “ Brand community” 5. Accessories (i.e freeze ,big hoardings, frooti stands) related to frooti should provided by company to retailers.
CONCLUSION: We can conclude the following: 1. By taking some initiatives, Frooti can compete with the fruit juice segment comprising of Real and Tropicana, and can maintain its position as a market leader in the NCSD category. 2. The consumers response to the new packaging (PET bottle and 65 ml Tetra pack) of Frooti is positive as shown in the survey. 3. Tag of Healthy drink can improve its declining ma rket share . 4. Distribution channel is weak. 5. Accessories (i.e freeze ,big hoardings, frooti stands) related to frooti is not provided by company to retailers.
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).
Dear Sir / Madam:
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.
1. Do you drink Soft Drinks ? Yes No
2. If yes, which Soft Drinks ? Carbonated Drinks Fruit Drinks
3. Which fruit Drinks you like most? MAZZA SLICE FROOTI
4. Should Frooti come in other flavor ? Yes No
5. If yes , which flavour ? Orange Pine apple Mix fruit Other
6. Is Frooti a health drinks ? Yes No
7. Is Frooti a child drink ? Yes No
8. Is Frooti readily available ? Yes No
9. Do you think advertising influence you to drink Frooti ? Yes No
10. Which drink give you more value ? Frooti Mazza Slice Real Tropicana
11. Which packages do u prefer most ? Pet bottle Glass bottle Tetra pack
12. Which quantity do you prefer most? 65 ml 165 ml 500 ml 1000 ml
13. Would you visit another store X, if you do not find frooti at your store? Yes No
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