FRUIT JUICE MARKET IN INDIA

India is the 2nd largest producer of both fruits and vegetables in the world. Different Agro-
climatic conditions ensure availability of a wide range of fruits and vegetables in large quantities
throughout the year. India produces about 148.6 million tons of fresh fruits and vegetables of
which fruits contribute to about 48.5 million tons and vegetables account for the rest 100 million
tons.

The market for fruit and vegetable juice has grown at a steady pace for last five years. The
market has grown from INR 1200 Cr to INR 3200 Cr from year 2004-2009 and in same period
volume grew from 250 Mn litres to 550 Mn Litres. Currently the market is pegged at 5200 Cr.
The fruit juice market can be classified on the basis of fruit contents in following segments:

Segment Fruit Content Market share Company Brands

Fruit Maximum 30% 50-60% Pepsico Slice
Drinks Coca Cola Mazza
Godrej Jumpin
Parle Agro Frooti
Nectar Between 25%-90% 10% approx Pepsico Tropics
Drinks Dabur Dabur Coolers
Godrej Godrej X’s
Fruit 100% fruit content, 30% approx Pepsico Tropicana
Juices with or without Dabur Real, Real Activ, Real Junior
preservatives, added Godrej Xs
or no added sugar

The table indicates big players like Dabur, Pepsi, Godrej and Parle Agro are already in the
market while some newcomers like Surya Foods and Agro, Mother Dairy, Ladakh Foods, Pioma
Industries are also trying to establish themselves in the market.

Fruit Drinks: Biggest contributor to this market, Mango is most popular flavor accounting for
more than 90%, Parle’s Frooti has commanding share of 75%, while Jumpin from Godrej is 2nd
with 15% share. Mazza and Slice are other brands in this segment.

Nectar Drinks: Contributes to 10% to this market, Godrej is leader with X’s brand, Pepsi has
Tropics with mango, guava and litchi flavors, Dabur have coolers for this segment

Fruit Juice: Is close to 30%, Dabur’s Real is market leader with a share of 55% followed by
Tropicana with 30-35% share.

Most Indians look forward to the neighborhood "juice walla," a vendor perched on the road with
his cart or selling his wares in a tiny shop, who blends a combination of fruits—watermelon,
papaya, pomegranate, orange, and pineapple, plus sugarcane, a hint of lime, and (if you wish)
exotic spices—to create a medley of tastes.

Some factors contributing to growth of this market in last decade includes:

Changing consumer lifestyles:
Change in eating habits, more exposure to media, aspiration of a better lifestyle, increase in
lifestyle diseases, time crunch, convenience, trend of shifting to healthier food options is adding
growth to this market.

Increased Health Awareness:

The rising awareness about heart- and weight-related health issues, especially among teenagers
and young adults, has propelled the consumption of packaged fruit drinks. There is also a greater
preference for these “healthier” beverages than carbonated soft drinks.

Hygiene matters:
Juices are healthy only when prepared hygienically. Packaged juices from trusted national and
international brands have usually been prepared and certified to be in accordance with health and
safety regulations.

Growing category of informed buyers:

There is a growing category of informed buyers who are able to distinguish between fruit-based
beverages and fruit juices. These consumers are health conscious, highly aware, and have higher
disposable income. They have, therefore, led the demand for 100% fruit juices in the past couple
of years.

Rising Disposable Incomes:

In the past few years, there has been a sharp change in the number of nuclear families, in tandem
with a surge in the number of working couples, which has led to higher disposable incomes. This
has aided the affordability of packaged fruit juices, which are fast replacing fresh, homemade
juices and becoming a compulsory item on breakfast tables.

Booming modern retail:

The dynamics of growth in the fruit-based beverage space are attributed to modern retail and
alluring shelf displays which drive impulse purchases.

Introduction to new flavors:

To kindle consumers’ interest in the category and also to cater to diverse and changing tastes,
fruit juices providers are introducing new flavors and packaging options.

You have joined as a Brand manager of “Health Plus” a nutraceuticals company which is a new
company in beverage segment. The company is planning a nationwide launch of its juice series
as it’s a promising sector with increasing numbers of health conscious consumer and more and
more consumer shifting from colas to these natural juices. The market is well aware of the
benefits of juices thanks to promotional efforts of Dabur and Tropicana.

The company is planning its launch before Diwali 2013, and you have been assigned the
responsibilities of Brand Management. Researches indicate that there are following segments
who consume juices. The characteristic features of various segments are (figures hypothetical
and not to cited elsewhere):
Segment A:
Represents 22% of the total population, Males aged 25-50 years, students as well as working,
40% of them are members of some health clubs or gyms, 10% actively engaged in sports, In
general they are fun loving and adventurous. They basically consume cola based drinks as they
think it is strong, masculine & represents fun and frolic. 70% of them are educated up to Post
Graduate level and generally they are more logical in their approach. Consume Fruit drinks but
shifts to fruit juices after 40’s.

Segment B:
Represents 20% of the population, Females aged 25-50 years, 30% students and remaining
housewives, 45% of the students are members of yoga, aerobics or other such activities, while
65% of the housewives want to join any of these activities but cant because of lack of time and
family responsibilities but they aspire being healthy, slim and attractive. This segment prefers
soft colors like pink, orange and other lighter shades. Consume Fruit drinks but shifts to fruit
juices after 40’s.

Segment C:
Represents 15% of population, consists of school going kids from 5-10 years. Consumption
decided or influenced by parents. Outgoing, fun loving and in their best part of life. Have a
craving for fast food and like to spend time with their families, friends and outings. Cartoons are
integral part of their life and most of them want to be a Super-Hero, carry Tiffin’s to school.
Consumes fruit drinks, fruit juices as well as nectar. Feeding them nutritious food is a tough job
for parents, and a mother running after their kids with a glass of milk is a common story in most
households.

Segment D:
Represents 18% of population, consists of teenagers from 13-25 years. 48% School/College
going males and females remaining in early part of their career. In most challenging part of their
lives. Performance pressure at peak, academic pressures, aspirational pressure, confused and
easily influenced by celebrities, fast moving, trying to put their best in whatever they do,
members of gyms and active in sports as well. 32% stay away from their families as they might
be studying in colleges or in early part of their career. Biggest consumer of Fruit Drinks.

The company has decided to venture in each of these segments. Prepare a plan of action of how
to successfully launch and establish a brand in this market. What differences the company can
think of while approaching these various segments.