Case Study - Fruitzone India Limited (A)

Product and Brand Management

MKTG306

Group 6

Mahek Arora, Vandana Kothari, Amaan Malik, Diya Ranka,

Diya Shah, Isha Shah, Ibreez Tyabji

Submitted To

Prof. Swati Nalawade

Word Count: 1624

FLAME University, Pune

25th March 2022

 Summary

The Fruitzone case study basically talks about the introduction of a new product under juices,
namely sugarcane juice by Tropiviva under Fruitzone and the subsequent market research that
was carried out to better understand the market segment and the potential positioning of the
product. In general, even through personal bias and observation packaged sugarcane juice seems
like a viable option with untapped potential and hardly any competition, it is still important to
gauge its standing with the target audience, which in this case is almost everyone - children,
adults, teenagers, etc.

From its research, the team noticed that they were various myths when it came to consuming
sugarcane juice - it's bad for old and diabetic people, it gets fermented fast and hence is only
good when fresh. This in fact is quite the opposite. Sugarcane is a diabetic-friendly drink and is
very healthy. Furthermore, it can also be served packaged as it takes quite some time to get
spoilt.

The reason why Fruitzone wanted to expand its products was because they knew the
geographical topography of their market and believed that it was very feasible to get varied
flavours. As people are becoming self-aware about their wants and needs along with becoming
more health-conscious, they would choose a healthier alternative and would be willing to try a
packaged product if the quality, freshness and price are reasonable.

They conducted market research to better evaluate their standing in the market to weigh in on the
decision of introducing a new sub-product aside from their pre-existing range. Through various
research methods, they were able to gain valuable insights which had various implications for
their decision in their new product development.
 Questions
1. Has the company identified the decision problem properly?

Ans: Yes, the company has identified the decision problem properly which is to follow a
structured approach and examine if it is a good idea to launch a new product – sugarcane juice-
into the market. Tropiviva is a juice brand whose market share has been stagnant for the past five
years thus, before introducing a new product into the market, it is important to do adequate
market research and identify the potential challenges.

2. Do a situation analysis, what is currently happening, what appears to be the problem and
challenges which is leading the manager and the team to do a market research? Is it a
correct approach?

Mr. Hemant wanted to add a new flavour to the market. He was most intrigued by Sugarcane.
Currently, Hemant is conducting primary and secondary research into entering the market as a
safety measure. He is very sure that the product will do well in the market, owing to his own pre-
existing knowledge of the Indian juice market. He believed that, which was also backed by the
research, there were many advantages of introducing Sugarcane juice into the market.

- The Indian juice market is untapped due to poor infrastructure, poor storage facilities and
a highly unorganised market.
- Brand loyal consumers would support the introduction of a new product.
- Sugarcane juice from India- Can be used as a strong motive to prove the quality of the
product.
- Their main competitors are street vendors. This can be used to their advantage owing to
the rising demand for convenient, packaged juice.
- There are many hidden reasons for Indians to demand packaged juice and they include
increasing per capita disposable income and increasing health consciousness.
Additionally, people prefer convenience over travelling for a fresh glass of juice.
- One last reason to introduce sugarcane juice into the market is that many consumers are
shifting to healthier products and now, many recent generation consumers are open to
trying new products that enter the market.
- Can use coconut juice as a reference to enter the market.

However, the research he conducted stated a few complications with this idea. They are:

- The health conscious youth are worried about preservatives and other chemicals that are
corrupting the drink.
 - It is a seasonal drink. Not all summer consumers would be willing to purchase the
product during different seasons.
- Difficult to handle winter sales. Might have to provide different flavours or might have to
present an entirely different idea of sugarcane juice to the Indian market- which is also
extremely challenging. It would be like challenging the Indian mentality at its roots.

To understand if the research was a correct approach, we can confidently say that it was well-
rounded research. The research team as covered both primary and secondary forms of research
while all data was collated and presented in a very organised manner. We believe that the
approach was structured and well-examined and it made sense to launch a .The results tipped
more to Hemant’s favour, therefore, the survey conducted seems to be a success.

3. What kind of information will the company receive after doing this research?
Ans: Conducting thorough Marketing Research is pivotal in any business, more so during stages
of inception, the introduction of a new product, or entering a different market, as it can define the
prospective success of your company or save you from spending huge sums of money over an
unrealized project. Fruitzone’s research was well-rounded and covered various spheres –
Secondary Research, Primary Data Collection, In-depth Interviews, Focus Group Discussions,
and Direct Retailer/Vendor Insights. The people in the market must be willing and able to
purchase a product that satisfies their needs and wants, along with finding demand and supply.
Thus, the concept of product in a market goes forth to facilitate definition as a task. After the
situational analysis which is basically used to analyze a company’s internal & external workings
to better understand their capabilities, business environments, and customers, Fruitzone will
receive the following information.

Essentially, they’ll be able to define potential customers, evaluate projected growth, assess their
competitors, and makes a realistic assessment of their business. It involves aiming towards the
business’s key objectives and identifying factors that support or hinder those objectives. In
layman’s terms, what they’ll be able to understand is as follows:

a. Their primary competition.

b. Their target segment – children, teenagers, adults, etc.

c. Hindrances such as myths that need to be dissipated.

d. False information or personal bias as to a product.

 e. Wants and needs of a customer.

f. Demand for the particular product.

g. Insights for better positioning the product, for example – price, variety, geographical
segmentation, quality, etc.

h. The branding and preferred packaging of the product: tetra pack and not bottle.

i. Time constraints and season sale link-up for the product – best during summer.

j. Consumer behaviour and needs around their products, and similar fruit/juice products.

k. Whether investing in/launching a new product seems feasible or not.

4. What kind of decisions will the company be able to take after conducting this research?

Ans: Due to the market research conducted it gives more clarity in making an informed decision.
Consumers are the most important to a company and their needs and wants must be met. Market
research can help and all their interviews, focus group discussions and surveys will help cater to
their consumers and make the right decision. They will decide whether or not to go ahead with
the decision of whether it is a viable option to sell packaged sugarcane juice. Considering the
pros and cons of the decision after all the market research and analysis is conducted. If they
choose to go ahead with the decision, they will get into the other aspects such as pricing,
marketing strategies, advertising, branding, target segments. They will also be deciding whether
they want to sell the juice seasonally or throughout the year, also about the packaging of it is
going to be sold in tetra packs or bottles. The material of the packaging is important as well
because the sugarcane juice needs to remain fresh and not lose its taste which was a concern that
the consumers had shown. They will also have to think about how to cater to the more health-
conscious target segment and come out with variations for the same. Other than this, costs for
advertising and marketing on several platforms will have to be budgeted.

5. What are the different aspects of Product development and Marketing Strategy ( 4 Ps of
marketing) that can be developed through this type of research?
Ans:

Elements of the marketing mix- 4 P’S - Price, Product, Place and Promotion
Product:
A packaged sugarcane juice that is hydrating, the flavour and taste is the main focus in the
summer months.
Flavoured versions of sugarcane- ginger and fizzy flavoured variants introduced during winter
months
The product can be packed in a 200ml plastic pouch design to set it apart from the regular tetra-
pack and bottles. This would also ensure it does not lose its taste and can be refrigerated if
needed.

Price:
The drink must be priced at a feasible price but 20% above the average price to accommodate
additional packaging and distribution costs. It must be viewed as a premium product to the
normal sugarcane juice available at local vendors.
The flavoured version can be priced at a premium price since it is something that is completely
new to the market.

Place:
The product should be made available in all supermarkets, convenience stores etc.
Sugarcane juice is mainly consumed by roadside vendors so the target should be to make them
more available and accessible.

Promotion:
The product can be promoted as an all-season drink with additional marketing of the flavoured
variants since those serve as a speciality product.
The product must also highlight its non-preservative characteristics so that it appeals to all target
audiences including health-conscious ones.