Agenda

 Industry Analysis
 Why this Product?
 About the Company
 Mission & Vision
 Target Market
 Competitive
Analysis
 SWOT Analysis
 Marketing Mix (4 P’s)
 Beverages market In India

Alcoholic Market Beverages Market

 INDUSTRIAL ANALYSIS
 Branded fruit beverage market in India is estimated to be worth Rs.
1,200 crore (nectars, drinks and juices combined)
 Juices - over 85% pulp content
 Nectars - 20% to 85% pulp content
 Fruit Drink – Less than 20% pulp content

Segment Market Share

Juices 30%

Nector 10%
Fruit Drinks 60%
 INDUSTRIAL ANALYSIS
 The Fruit Drink market has grown at a 20% to 25% rate.
 Of this, more expensive juices segment has grown at rate of
 40% this year. It accounted for only 15% of the fruit beverage 3
years back.
 In–home consumption of juices has gone up from 30%, three
years back to 80% today.
 Mango based drinks account for two thirds of fruit drinks
industry.
 More than 80 % of sales happen through the unorganized
route - juice centers, street corner shops and so on
 MISSION
“To be a leading producer of fruit juices based on

dedication to nature, corporate and process

hygiene, dynamic leadership and commitment
to our partners and stakeholders
 VISION
“To be India’s Premier Fruit Juice Company,
offering nutritious & superior quality tasting

drinks to its consumers. By 2016 we aim to

achieve 30% of Market Share, and while doing

it we would be the best in terms of consumer

value, customer service, employee talent, and

consistent and predictable growth.”

 WHY THIS PRODUCT
 India currently produces about 50 million tones of fruits, which is about
9% of the world’s production of fruits.
 Though India has a strong raw material base, it has been unable to tap the
potential for processing and value addition in perishables like fruits and
vegetables.
 Only about 2 percent of the fruits and vegetables in India are processed,
which is much lower when compared to countries like USA (65 %),
Philippines (78%) and China (23)%
 WHY THIS PRODUCT
Factors Driving Demand for Our Product
1) Changing age profile- A relatively larger share of young
population which has the ability to spend on processed foods
2) Increase in income- The middle and upper middle income
groups growing at a faster rate than in developed countries
resulting in higher spending on food
3) Social changes- Increasing number of working women
4) Life style factors- Increasing health consciousness and need
for convenience fruit drink
5) Availability of Organized Retail outlets- These provide the
much needed forward linkages
 TARGET MARKET
Primary Market
– Kids – Fond of Fruit Juice (fond of mango, strawberry)
– Teens – More experimental
– Youth – Experimental and more buying power
– Working People
– Housewives
– Elderly people
Secondary Market
– Travel Industry
– Airlines, Railways and Local Transport Systems
– Recreational
– Movie Theatres, Malls, Amusement Parks.
– School, Colleges
– Hotels, Restaurants, Bars etc.
 Market Segmentation
Market segmentation is the process in marketing of
dividing a market into distinct subsets (segments) that
behave in the same way or have similar needs
Variables Used for Segmentation
1) Geographic variables
2) Demographic variables
3) Psychographic variables
4) Behavioral variables
Variables Used for Segmentation

1) Geographic 2) Demographic

4)Behavioral
3)Pychographic
 Geographic
 By leveraging the benefits of liberalization and
integration of the markets of the world, FP will
seek to serve both domestic and international
customers.
 Metropolitan Cities, major cities/towns of the
states.
 Density of Area: Urban, Semi-urban, Rural.
 Climate: Tropical
 Demographic
Age – all age group
 Gender – Both Male and Female
 Family size - doesn’t matter
 Education - doesn’t matter
 Income – middle & hi end consumer
 Occupation – student, working and retired people
 Nationality/race – doesn’t matter
 Language - doesn’t matter
 Psychographic
Personality No
Lifestyle YES
Value YES
Attitude YES
 Behavioral
 Benefit sought
 Product usage rate
 Brand loyalty
 Profitability
 Income Status
Major Competitor
Major Competitor Analysis

Frooti from Parle Agro is the largest

distributed fruit drink with 85% market
share (Tetra Pack)
It reaches more than 10 lakh retail outlets
in up to class C towns
Parle’s Agro’s APPY, in 1996 had a
market share of 5% in the fruit drink
segment
In 2003 its new variant-APPY FIZZ was
launched which was a
Major Competitor Analysis

In 1993, Maaza was acquired by coca cola India.

Maaza was launched in 1976.
 Over the years, Maaza has become synonymous with mango.
 The drink became a hit with successful advertisement campaigns like "Taaza
mango, maaza mango,' and 'Botal mein, aam, maaza hain naam.
 It is available in 200 ml , 250 ml , 125 ml, Tetrapak and 200 ml Tetrapak.
Major Competitor Analysis

Dabur's flagship brand Real fruit juice is a market leader in the packaged fruit juice
category.
Real with a market share of 57 % offers to its consumers the largest range of 9 juices
that comprise orange, mango, pineapple, mixed fruit, grape, guava, tomato, litchi and
cranberry
 Real Active orange carrot juice, India's first packaged fruit + vegetable juice.
 Spread over 11 acres and geared to process 150 tones of fruit per day, it has the
capacity to produce 192 tones of pulp/concentrate
Major Competitor Analysis

Tropicana is a product of vast PEPSI family and has a market share of 25%
 The company sources orange juice concentrates from Brazil.
 They come in Tetrapaks of one litre and
 PET bottles of 500 ml and one litre.
 Pepsi also markets Gatorade an energy drink for the sports personnel which is a
sugar-free Diet Pepsi.
 Pepsi, in association with Unilever have launched Lipton iced tea
 Strengths & Weakness of Competitors
Name Strengths Weakness

CavinKare Pvt Ltd Acquired Maa Fruits Pvt Ltd Entering in a new
Distribution network segment
Coca Cola India Global leader in beverages New Entry
Growing Fast
PepsiCo Global Brand in beverage Less Product Line

Parle Agro Market share Less Product Line

Dabur Market leader Less cost effective

Godrej Beverages Innovation New entry

Ladakh Foods Nutrients Taste

Mother dairy Cost Effective New Entry

SWOT ANALYSIS
INTERNAL STRENGTH
• Adequate availability of raw materials
• Price, a competitive advantage

.
• Natural Product

INTERNAL WEAKNESS
• Seasonal availability of fruits
• Brand acknowledgement
• Late entry into the market.
• Dependence on HP fruits.

• Dependence on Monsoon
SWOT ANALYSIS
EXTERNAL OPPORTUNITY
• Participation with a growing industry.
• Competitive advantage over carbonated soft drinks.
• Success of incredible India campaign
• Possible deal with Mumbai Criket Association (MCA), IPL

External THREATS
• Cut throat competition
• Unstable government policies

• Rising Global Warming

Marketing Mix
 Product
 Product Name is a 100 percent fruit juice which
will be produced and marketed by the Company
Name

 BRAND NAME: ________

Our Product Variants
 Product Life Cycle
Our product lie in Introduction Period of PLC
 Low sales
 High costs per customer
 Negative profits
 Innovator customers
 Few competitors
Objective: To create awareness of product
 Offer a basic product
 Price at cost-plus
 Selective distribution
 Awareness – dealers and early adopters
 Induce trial via heavy sales promotion
 Place

Kullu
(Himachal Pradesh)
Hazira and Dahej
(Gujarat)
 Place
 In the initial phase we would be outsourcing fruit processing
and packaging of Fruit Juices under ------ brand.

Fruits such as Orange, Apple, Pineapple etc would be

purchased from Kullu. Fruit Processing & Packaging
would be outsourced to local producer.

 Mango would be purchased from Hazira and Dahej. Fruit

Processing & Packaging would be outsourced to local
producer.

Mode of Transport: Road Transport

 Pricing
 As a new comer our pricing strategy is to introduce
our products in the market at lower prices so as to
create huge demand in the market and then compete
with other competitors.

 As we come up in the demand, we will increase our

prices and will provide more efficient and affordable
juices
 Pricing Strategy
Penetration Pricing
Our product will be lie
on penetration strategy
with high quality & low price
 For introducing new product
 Price low to capture
market share
 Expect to make profit
in volume
 Promotion
 As we are in the Introduction phase, our objective is to create brand
awareness through Informative Advertising.

 Use of Print Media, Radio Advertisement, Hoardings in Public Spots, Sample

Distribution, Organizing Events, TV Commercial etc.

Tie Up with major Cinema halls to promote our products during Intervals.
In-film advertising, in its most effective form, is about a brand being a part of
the cinema's content.
Promotion
 Web Marketing
Social Networking: In order to reach out to the TA and ensure that they feel
more connected with the brand it is necessary to start making conversation.

facebook
Creating a community on facebook
Creating a Fan page on facebook
This will enable the brand to keep its TA engaged and updated on the
introduction of new flavors and events

twitter
Creating an active account on a micro-blogging site such as twitter, where
regular tweets on product and event updates will ensure interactivity
Followers will be encouraged to tweet their suggestions on new flavors.
No. Particulars
5 Year Financial Planning
1st Year 2nd Year 3rd Year 4th Year 5th Year
A Installed Capacity (In Tonnes) 1070 1070 1070 1070 1070
Capacity Utilisation 75% 85% 85% 85% 85%
Sales Realisation (20 % Growth yoy) 115 138 165.6 198.72 238.46
B Cost of Production
Raw Materials 54.75 60.23 66.25 72.87 80.16
Packing Material 4.25 4.68 5.14 5.66 6.22
Salaries 21.25 23.38 25.71 28.28 31.11
Stores & Spares 1.5 1.65 1.82 2 2.2
Selling and Distribution 8.5 9.35 10.29 11.31 12.44
Administrative Expenses 5 5.5 6.05 6.66 7.32
Total 95.25 104.79 115.26 126.78 139.45
C Profit before Interest & Depreciation 19.75 33.23 50.35 71.94 99.01
Interest on Term Loan 3.32 3.32 3.32 3.32 3.32
Interest on Working Capital 0.28 0.28 0.28 0.28 0.28
Depreciation 2.23 2.23 2.23 2.23 2.23
Net Profit 13.92 27.4 44.52 66.11 93.18
Income-tax @ 20% 2.78 5.48 8.9 13.22 18.64
Profit after Tax 11.14 21.92 35.62 52.89 74.54
Note- Rs in Lacs
 5 Year Planning
 Target of capturing 5% of the market share within a year and 30% by
2020-end
 Initially we would be outsourcing the processing of fruits, but after 3 years
we would check the feasibility of starting our own processing plant.
 R&D Department to be set up by 2014 early, in order to facilitate
innovation in existing products.
 We would open Satellite Branches in Major Cities to facilitate product
training & improve on Market Share.
 Company will be undertaking a host of energy conservation measures
Thank YOU