Marketing of Fruit Juice by Commerce Solutions in Marketing, Project Report Company

Shreeji Enterprises P t! "t# $ill be entering the foo# processing in#ustry $ith its first launch i!e! a %i$i fruit juice! &hree of the four in estors ha e full operational responsibilities! S' an# S( are the co) foun#ers an# ha e both entrepreneurial an# in#ustrial e*perience! P+ brings operational management an# financial skills to the operation! Shreeji Enterprises P t! "t# has a Strategic ,lliance $ith the -e$ .ealan# base# company .espri /nternational "imite# to supply the ki$i fruits to /n#ia! Pursuant to our company policy stating 01uality First, Cre#it Prominent0, $e process our %i$iJoos $ith strict pro#uction stan#ar#, 2uality control an# sophisticate# processing technology, $e at all time pro i#e our consumers the natural an# healthy %i$ifruit juice! 3ur Start up costs, liste# belo$, has been finance# to #ate by the in estment from its o$ners! Follo$ing are the parameters4 Particulars "an# 5 site #e elopment67*7 acres 8 Rs! 7y9 lakh per acres +uil#ing an# ci il $orks Plant an# machineries Miscellaneous Fi*e# ,ssets Preoperati e e*penses Preliminary e*penses &echnical kno$)ho$ an# engineering fees Contingencies 8 :;< Capital E*pen#iture Margin money for $orking capital Project cost Market ,nalysis Market ,nalysis Summary4 3ne can sense an e olution that the in#ustry has seen $ith #e elopment in the tetra) pack market, there also has been a natural progression from #rinks to nectars to juices an# ,mount *** *** *** *** *** *** *** *** *** *** ****

$hile tra#itionally fruit #rinks $ere aime# at chil#ren, the ne$ bran#s like =3njus, Real, an# "ife> ha e focuse# on young a#ults an# professionals! ,lthough fruit #rinks focus strongly on out of home consumption, the juices an# nectars ha e been concentrating on takea$ays or in)home consumption $ith more choice coming in, the tetra) pack market is likely to $itness further segmentation! Package# fruit juices are getting recogni?e# as social #rinks no$, $ith #ominant consumption being obser e# in the company of family an# frien#s! People ha e starte# to percei e fruit juices as anytime be erages, $ith consumption being sprea# more or less e enly bet$een the mi# mornings, afternoons an# e enings! ,n# generation no$ is as much incline# to sipping fruit juices as colas, $ith teenagers #ri ing the ma*imum trials! /f the fin#ings of a usage an# attitu#e stu#y con#ucte# by market research agency /n#ica Research across :@;; a#ults in Sec , an# Sec + househol#s in 'elhi an# Mumbai are anything to go by, then its not just champagnes an# colas that 2ualify as social be erages!

&he results of the research can be briefly put as follo$s4 A ,mong package# fruit be erages, the =a$areness to trial, ratio of PepsiCo>s &ropicana juice bran# has been rate# the highest! Bp to :C< of the respon#ents $ere a$are of &ropicana, $hile the bran#>s trial stoo# at ::<, also, D< of the respon#ents stocke# the bran# at their homes! 3ther parameters $here &ropicana e#ge# out competitors inclu#e# taste, health, purity an# nutrition, accor#ing to the stu#y, &ropicana $as also percei er as =reasonably price#>! A &he a erage /n#ian may ha e a legen#ary $eakness for mango, but $hen it comes to preference of fruit)base# juices6 his choices are in tune $ith international tren#s! &herefore it is orange juice that is the most preferre# fruit juice fla our in /n#ia, follo$e# by apple, s$eet orange an# mi*e# fruit! A &he fin#ings in#icate that most package# juice #rinking consumers tra el abroa# on holi#ays! A 3ther attributes of bran#e# juice consumers inclu#e employment of #omestic help, o$nership of assets an# cre#it car#s, an# health consciousness $ith D;< respon#ents going to aerobic classes or $orking out at gymnasiums! A Bn#erstan#ably therefore, a$areness an# trial le els of package# juices are higher $ithin the Sec , category, than among Sec + consumers, the majority of $hom rate# these as aspirational! A ,$areness le els are similar in both Mumbai an# 'elhi6 more trials are generate# by 'elhities than their counterparts in Mumbai! A &he consumers are starting to percei e fruit juices at home! Ehile FF< of the respon#ents consume# :) litre packs at home, GF< consume# @;;ml packs! &he fruit be erage market has more acceptances in -orthern an# Eestern /n#ia, $hich is

#ue to the climatic con#itions pre ailing there $ith relations to the rest of the country! Market Segmentation4 &here has been no general acceptance of the pro#uct forms in the fruit be erage market! &he consumer is basically concerne# if it is a fruit juice or synthetically constitute# pro#uct! Pro#uct segmentation, therefore, shoul# be clearly #elimite#! A Bn#er the fruit #rinks the first segmentation is bet$een real fruit #rinks an# synthetic #rinks! &he real fruit #rinks are base# on natural fruit pulp or juice! &he synthetic #rinks are synthetic pro#ucts $ith fruit or other fla ors! A +roa# taste preferences coul# be another $ay to #efine the market! &he market is at present also segmente# on the basis of fruit pulp content! For the purpose of segmentation, on the basis of fruit pulp content! For the purpose of segmentation, on the basis of fruit pulp content, market can be segmente# as4 Fruit juice $ith pulp content more than D;<! +ran#s falling in this category are 3njus, Real, &ropicana, etc! Fruit -ectar $ith pulp content bet$een G;< to H;<! "ife an# I>s come in this category! Fruit 'rinks $ith pulp content less than G;<! Frooti an# Jumpin are the popular bran#s in this category! A Segmentation coul# also be on the basis of the benefits pro i#e# to the consumer4 3ne benefit coul# be the nutrition content it gi es to the consumer so one market coul# be the health)conscious segment! Secon# benefit is thirst 2uenching, so the other segment coul# be those buying the #rink or nectar for satisfying the thirst! A ,nother ery broa# segmentation can be on the type of situation in $hich the #rink or nectar is use#4 People $ho are on the mo e i!e! 3ut#oor use e!g! those tra eling! People $ho are using it on the breakfast table as a part of their menu i!e! in) house use! Players ery often choose one or more of such segmentations to #ifferentiate their pro#uct an# target market an# accor#ingly plan their #istribution an# promotion patterns! Market -ee#s4

Consumers usually, are not going to accept something that #oesn>t taste goo# e en if it is goo# for them or has certain benefits! Companies $orking to bring a ne$ foo# pro#uct to the market ha e t$o 2uestionsJ#oes it taste goo# an# $ill consumers buy itK

Market &ren#s4 &ropical fruits an# fla ours #ominate the market, yet some consumers are still hesitant to try unkno$n e*otic fla ours like cherimoya, guanabana an# carambola! Companies ha e foun# the best $ay to intro#uce e*otics is in combination $ith familiar fla ours! , fla our combination that began in the ne$ age, F< to :;< juice category, an# has sprea# to other be erage categories as $ell as to other pro#ucts like ki$i, stra$berry, etc! stating that it $as a small company that took the risk an# $on! Smaller companies lea# the $ay, as they are more $illing to try e*otic fla ours e en though the larger companies ha e a larger staff an# bu#get, an# can affor# to search out the tren#s! &he large companies ten# to intro#uce prototypes that are pretty $ell)teste#! &hey are al$ays intereste# in the ne*t fla our tren#, but usually are not the first to #ebut it! Fortifie# #rinks are also gaining market i!e! the juice is processe# an# an a##itional nutritious trait is a##e# to enhance its $holesome alue e!g! $ith a##itional calcium, itamin C etc! 3ne can notice the population in the country mainly in the cities becoming more an# more a$are $ith regar# to the nutritional aspect of life! &his kno$le#ge, couple# $ith the consumer>s #esire for a healthier lifestyle, has greatly impacte# the e olution of juice an# juice)base# #rinks o er the last fe$ years! /n#ustry analysis4 &he Rs :;; crore package# fruit juice market is estimate# to be gro$ing at @;< to @F< annually, $ith &ropicana an# Real hol#ing G;< market share each! &he market can be categori?e# in terms of pro#uct content an# there are three major pro#uct contents a ailable! A 'rinks4 Juice $ith pulp content less than G;<, A -ectars4 Juice $ith pulp content bet$een G; ) D;<, A Juices4 Juice $ith pulp content more than D;<, &he canne# juice market initially co ere# bran#s like -,FE', -oga, Mi#lan#, Lol# Coin an# 'ruk! &hese $ere fruit juices an# nectars an# not #rinks! +ut they #i# not make a mark in the market #ue to reasons such as high price, unattracti e packaging an# lack of

right promotion programme! Parle ,gro>s Frooti, a mango #rink, $as intro#uce# in the tetra pack in :MDF an# since then has been a lea#er in its segment! &he market has su##enly picke# up since :MMG)MF an# a fe$ players ha e emerge# as market lea#ers! "ea#ing Manufacturers of Fruit +e erages in /n#ia4 Company :! Parle ,gro +ran# Frooti fla ours Mango, Lua a, Pineapple, Stra$berry 5 3range ,ppy @! PepsiCo "t#! &ropicana ,pple 3range, -ature S$eet, ,pple, Lrape, Pineapple, &omato, Mi*e# Fruit! Slice N! 'abur Real Mango, "itchi, 3range 5 Lua a! Lrape, Lua a, 3range, Pineapple, &omato, Mi*e# Fruit, "itchi, Mango! Real ,cti e G, Lo#rej Foo#s Jumpin Re Is F! Coca Cola O! ++/! // C! Poltas D! Qin#ustan Maa?a &ree &op Polfruit Lrapy 3range, ,pple 3range, ,pple 3range, ,pple 3range, ,pple Mango Mango Mango Re# Lrapes, "itchi, etc!

M! QP ,gri :;! -orth East ,gro Mkt! "t#! ::! %erala Milk Mkt! :@! Salstar Foo#s :N! Mohan Meakins :G! Mo#ern Foo#s :F! Eastern Fruit :O! -,FEE'

QPMC -ER,M,C

,pple Marketing Pineapple

Milma Regol# Lol# Coin Rasika Efil -afe#

Mango, Pineapple Mango, ,pple Mi*e# ,pple Juice Mango, Lua a Mango, "itchi ,pple, Mango, Processe# Lua a,Pineapple, 3range

:C! Pa#ilal /n#ustries "t#! :D! Qimgiri Foo#s :M! "akhanpal Foo#s @;! E/MC3 "t#! @:! &ims Pro#ucts @@! +EC foo#s

Pa#ilal Qimgiri P,F, Sunsip &/MS R3".

Mango, Pineapple, 3range Mango, Pineapple, 3range Mango, Pineapple, 3range &ropical Fruits %ioces Mango, Pineapple, 3range, Lua a Mango, Mi*e# Fruit Juices Pineapple ,gro!

@N! &he Maharashtra /n#s! -3L, 'e elopment Corp! "t#!

7&he abo e mentione# list consists of the bran#s noticeable in metros an# as such there are a large number of small canning units scattere# all o er the country catering to niche markets!9

/mports4 Eith a $hole range of pro#uct lines opene# up for imports o er the past :G months, these e*porters ha e no$ full free#om to e*ploit the huge /n#ian market! &he fruit juice market in /n#ia is not yet large enough to justify in esting! &o#ay the consumer has got a $i#e ariety to choose from as many foreign foo# an# personal pro#ucts can come in unrestricte# no$! &he /n#ian market place has seen a #ramatic increase in the range an# 2uality! &here is e*pecte# to be some le el of competition in these areas! 1uality $ill ha e to impro e an# manufacturers $ill ha e to be more cost effecti e! Proliferation of pro#uct range is also pro ing to be a problem for retailers $ith limite# space on their shel es! Eith /n#ian pro#ucers also impro ing an# enhancing their ariety, pro#ucts are jostling for space! Consumer>s belief in /n#ia pro#ucts too is going up6 earlier issues $ere of #urability an# poor shelf life! -o$, /n#ian pro#ucts ha e mo e# up to the ne*t le el! &his coul# make it tough for importe# pro#ucts to make a #ent in establishe# categories, especially $here there is a substantial price #ifference! &he comple* sales ta* structure /n the arious states confoun#s the e*porter of fruit juices for instance, it is myria# arying from state to state i!e! Central sales ta* in 'elhi at DF an# in %erala it is @;<, $hile Maharashtra has P,& plus octroi hence fi*ing prices is 2uite an e*ercise an# $hen you a## on these, the pro#uct becomes e*pensi e! Right no$, sale of importe# goo#s from stores is at the top en# an# is small percent of store turno ers! +ut this is e*pecte# to go up in the years to come! /mports may not really make an impact in the market, but coul# allo$ legitimacy to some of the pro#ucts that come through the grey market channel! &he remo al of 1Rs 71uantitati e Restrictions9 is not e*pecte# to ha e a major impact on the Rs :;; R crore organise# #omestic juice market! &his coul# be on account of the continuance of customs #uties at aroun# N;)NF< 5 juices ha e been coming into /n#ia un#er the open license policy for o er @ years no$! ,s such, there has been no change ion the E*im policy for the juice market! &hrough in#ustry players are confi#ent that there $ill not be a #eluge of juice bran#s but they e*pect some more a##itions in this category mainly because this market is gro$ing an# not necessarily as a fallout of E*im policy! &hey also belie e the stage is not set for any major price restructuring, or price $ar in the /n#ian juice market as yet, as this market is ery small still, an# normally se ere price $ars happen only $hen the market becomes big! +oth +erri an# +allantyne are among the recent entries in the in#ustry! +erri fresh juice pro#ucer $hich has O;< of the ,ustralian #omestic market an# sells to o er N; countries! &he company>s pro#ucts such as ,pple, 3range, #ark Lrape an# ,pricot juices are no$

a ailable at supermarkets in the major cities in /n#ia! (et, in the year that +erri has been in the market, it has foun# the response to be goo#! /t has gaine# about F)O < of the fruit juice market! For +erri, $hose biggest market happens to be ,sia, /n#ia is still small! +ut the company is serious about gro$ing it! +allantyne also as ,ustralian company is also not looking at in estment in /n#ia at this stage! Problems $ith imports4 A &he importe# pro#ucts on offer in most stores stocking foreign foo#s re eal that they are close to their e*piry #ates! A Most such pro#ucts a ailable no$ come through the grey market! Most of these pro#ucts, especially those that come from South)East ,sian countries, are importe# by agents $ho supply to stores! ,s the importe# process itself is a long #ra$n out affair, often foo# pro#ucts lan# up on shel es 2uite close to their e*piry #ates an# there is also a #anger then of agents tampering $ith e*piry #ates an# consumers buying stale foo#! A &he other problem that retailers face is that since they are #ealing $ith agents there is a problem of returns of pro#ucts $hen they are past e*piry #ates! /ts not an issue $hen a retailer is #ealing $ith a company as there is a mechanism for accepting returns! ,t times companies are seen to import through their o$n channels an# supply it to the retailers! A /n#ia is a #ifficult market mainly because of #elays at the #ocks, tariffs an# #uties on arious pro#ucts, bribery an# corruption an# the lack of a col# chain Sfor horticulture pro#uceT! &hings $hen they arri e #o not get straight$ay into col# storage i!e! the ina#e2uate infrastructure to han#le the #istribution of fresh pro#uce, $hich causes a rapi# #eterioration in the 2uality! &herefore, $hile there coul# be more bran#s in the organise# juice market, the bigger chunk of the market $ill, in all likelihoo#, continue to be $ith the alrea#y e*isting players! Fruits an# their #eri ati es are e*pecte# to enter /n#ia in huge 2uantities an# once the market becomes bigger an# olumes come in, prices of importe# goo#s are e*pecte# to come #o$n! Substitute4 Fruit juice companies ha e to face a t$o le el competition i!e! on the first le el $ith the substitutes an# the then the players $ithin the in#ustry! &he =sip $ar> is comprise# of the follo$ing players $ith respect to /n#ia! A Soft 'rinks Sboth carbonate# an# -on) carbonate# soft #rinksT Soft 'rinks are #i i#e# into carbonate# an# -on) carbonate# #rinks! Ehile Cola, lemon an# oranges are carbonate# #rinks mango #rinks come -on) carbonate# category!

A Fla oure# Milk Senergy, -)Joy etc!T Just like fruit #rinks Fla oure# milk is also positione# on the health platform! Companies are trying to project it as a fun #rink $ith a##e# fla ours an# inno ati e packaging! A Mineral Eater Fruit #rink sellers consi#er e en mineral $ater as substitute to their offerings! &he main assumption is that packs ensure 2uality #eli ery! A 3ther pro#ucts Milk by) pro#ucts like buttermilk an# lassi also ser e as major substitutes! &hey compete in terms of lo$ price as $ell as easy a ailability! &hese #rinks are also consi#ere# important from the health perspecti e!

'istribution patterns4 'istribution net$ork an# reach are ital factors for success of the bran#s in the fruit be erage market! /t is mainly the #istribution strategy that the companies are focusing upon! &he #istribution is mainly #one through stockist! &he companies also ha e franchises that $ork as a separate entity! Some companies also ha e their C 5 F agents to gi e the pro#uct to the #istributors, $ho further #istribute to the retailers! &o co)or#inate the things properly $ith the #istributors, companies keep their o$n fiel# force! +elo$ the figure sho$s the many $ays the companies in this in#ustry are seen to be operating4

&he urban /n#ian retail sector has tra#itionally been structure# aroun# three small retail entitiesJthe grocer, the general store an# the chemist! A &he grocer stocks non package#, unbran#e# commo#ities such as rice, flour, an# pulses, as $ell as bran#e# fast mo ing consumer goo#s SFMCLsT A &he general store stocks only bran#e#, package# FMCLs! A &he chemist, a part from #ispensing pharmaceuticals pro#ucts, sells bran#e# FMCLs such as personal care pro#ucts an# health foo#s! A 'epartmental stores an# supermarkets! A 3thers4 +akeries an# confectioners Fruit juiceU tea stallU en#ing machines /ce)cream parlours,

 Electrical an# har#$are stores an# -on)foo# bouti2ues, etc! &hese retail outfits stock bran#e# FMCLs that gel $ith their businesses! Supply chain integration #oes not 2uite matter in the case of the small retailer because of the small scale of his operations! Qe normally #eals #irectly $ith $holesalers $ith $hom he is able to negotiate rates! Retail consoli#ation Sconsoli#ation of buying po$erT among supermarket operators is unlikely to hurt small retailers simply because it $ill affect manufacturers #irectly, $ho $ill not $ant to compromise on the #istribution reach to offer large olumes to a fe$ big retailers! &he small retailers form an integral part of the $i#e #istribution net$ork set up by the large FMCL companies! Marketers ha e also foun# that pri ateU store bran#s from supermarkets can pro e to be a threat to their o$n bran#s an# hence, #esist from encouraging retail consoli#ation! Consumption an# buying Patterns4 &he /n#ian lifestyle has a tra#itional pre#ilection for fresh fruits an# egetables or those processe# at home! People go in for fresh fruits en#ing from kiosk fountains, $hich pro#uce instant juices from fresh fruits in the presence of the consumer! 3ne reason is the una ailability of hygienically pro#uce# an# $ell) preser e# pro#ucts $ith the use of preser ati es! &he fact that it is packe# #enies its freshness! &his $as also a reason $hy some of the real but bran#e# fruit juices launche# in the late :MD;>s an# early :MM;>s #i# not succee#! &aste is often the secon#ary consi#eration in the /n#ian market for be erages! Fruit juices also lose on roughage, $hich is an important part of fruit nutrition! Fe$ people kno$ the #ifference bet$een a juice an# nectar! /n general, the /n#ian consumers ha e become health conscious no$ an# are looking for healthy an# natural appeti?ing juices! &hey are mo ing a$ay from synthetic #rinks to natural an# $holesome fruit juices! ,t present6 A Per capita consumption of juices in /n#ia is estimate# at a fraction of a litre i!e! @;;ml! A &he consumption of fruit juices in take home packs is estimate# at :C@F; mnlt! A Consumers go for con enient an# economy pro#ucts! So small packs are $ell suite# for tra elers an# chil#ren an# large take home packs for families an# price conscious people! A , ailability in chille# form an# bran# a$areness plays a crucial role in purchase #ecision! &his has implications for the nee# for a ailability of the pro#uct an# in the right

form! A Ehile there is no a ersion to consumption of fruit be erages by any group, the main consumers of this market are people in the age group of N; an# belo$! (oung a#ult an# teenagers pre#ominantly consume tetra pack #rinks! A +ran# loyalty is ery lo$, as all the pro#ucts taste the same! +ut bran# loyalty is high in case of ki#s! V &hough there is a lot of #ifference bet$een bran# a$areness an# bran# loyalty! A Consumers are money conscious $here the purchase of fruit be erages is concern! A Consumers are not rea#y to e*plore the market! &hey #o not $ant to change their taste an# are stuck to their ol# bran#s! 3range an# other #rinks are slo$ly picking up an# breaking the loyalty to$ar#s ol# bran#s!

Main Competitors4 , host of bran#s are jostling for thirst space! -ot just colas but be erages an# fruit juices of all hues are a#orning shop shel es! From bottle# ice#)tea to bran#e# chhaas, fruit) base# #rinks an# fla oure# milk, be erage makers ha e gone berserk $ith pro#uct inno ation as ne$ ariants continue to floo# the market! Fruit #rinks are high on the s$ig list in summers as it is part of the health fa# s$eeping the nation! Qealth conscious consumers are increasingly gi ing aerate# #rinks the go by an# making a beeline for fruit)base# concoctions! Moreo er, spora#ic contro ersies about pestici#e)infeste# cola #rinks are sai# to be #ri ing consumers to$ar#s fruit)base# #rinks as a safer alternati e! &hat is $hy e en e*isting players are going all out to pour out ne$ fla ours!

'abur4 'abur Foo#s that $as set up in :MMC has bran#s like Qomma#e, "emonee? an# Capsico in its basket! &he Rs! NC crore 'abur Foo#s lt#, a $holly o$ne# subsi#iary of 'abur /n#ia lt# ahs t$o bran#s of juice in the market, they are6 A Real A Real ,cti e For its Real bran#, 'abur is focusing on increasing in home consumption by targeting mothers an# chil#ren! /t is price# in the range of Rs! O; to OF 7: liter9 an# Rs :F 7@;;ml9 e*cept for Lua a that is sol# in the range to Rs OF to C; an# Lrape that is sol# for Rs! C; to CF! /ts ingre#ients are $ater, fruit concentrate, sugar, citric aci# an# fla ours of6 A Lrape, Lua a, 3range, Pineapple, tomato, Mi*e# Fruit, "itchi an# Mango!

&he Real ,cti e bran# is targete# to$ar#s fitness) cra?y young consumers! &he #rink is positione# on the health plank! /t $as launche# to$ar#s the en# of @;;@! ,t the same time, the company plans to position Real ,cti e as its premium juice bran#, $hile Real $oul# be targete# at consumers belonging to socio economic categories + an# C also! /t contains only fruit concentrate an# $ater! /t is price# at Rs! OD an# C;! /t is a ailable in the Fla ours of6 A ,pple an# orange! &he company $as eyeing a turno er of Rs! O; crore in the year @;;: );@, $hich is an increase of nearly F;<! ,ccor#ing to the company it ahs seen a gro$th of GG< in the financial year @;;:);@ as compare# to NG< in @;;;) ;:! &he company plans to increase the a# ertising spen#s for the bran# by nearly G;<! &o#ay the a# ertising an# marketing bu#get for the bran# by nearly Rs D Crore! &he company>s thrust is on increasing in)home consumption therefore they are mainly targeting the mothers an# chil#ren! Qo$e er, the company has restricte# its acti ities in the urban areas only an# $ishes to fully consoli#ate markets in the cities before looking at the small to$ns an# rural areas 'abur Foo#s claims to be the market lea#er in the pure juice category such as Punjab, 'elhi, Qaryana, etc!

PepsiCo4 &he Pepsi operations in /n#ia are no$ the part of the ne$ ,sian #i ision of PepsiCo +e erages /nternational forme# by the merger of PepsiCola /nternational, &ropicana an# Latora#e, the sports be erage company ac2uire# from 1uaker 3ates! Earlier, /n#ia $as one of the eight business #i ision of the be erage company that use# to report to PepsiCo /nternational in -e$ (ork #irectly! -o$ it reports to PepsiCo +e erage /nternational ,sia in Qong %ong! PepsiCo +e erage /nternational is a #i ision of PepsiCo /nc! &his mo e has been prompte# by the nee# to gi e greater regional focus to ne$ pro#ucts like &ropicana an# Latora#e so that they become a key element of the o erall portfolio of the BS be erage major! PepsiCo /nc! is one of the $orl#>s largest foo# an# be erage companies! &he company>s principle businesses inclu#e4 A Frito R "ay snacks A Pepsi)Cola be erages A Latora#e sports #rinks A &ropicana juices A 1uaker Foo#s Pepsi /n#ia is alrea#y $orking on a strategy to launch a be y of Latora#e pro#ucts in the country by the en# of this year! &hese are as follo$s4 A Latora#e &hirst 1uencher

A Latora#e -utrition Shake A Latora#e Energy 'rink A Propel Fitness Eater A Latora#e Energy +ar /t is also planning to gi e a major thrust to the juice business through the launch of a host of ne$ pro#ucts un#er the &ropicana bran# name i!e! on the health an# energy platform! PepsiCo has so far in este# aroun# Rs! :;; Crore inn rea#y to #rink juice segment $here the company has t$o bran#s &ropicana 5 Slice! /t has :G plants in /n#ia pro#ucing fruit juices 5 @ of them $ork on tetra pack! &ropicana4 &ropicana entere# the country in :MMD! &ropicana is currently importe# in a concentrate# form, $hich is later reconstructe# at a plant in +aramati, near Pune an# acuum packe# into tetra packs after paying an import #uty! /t co ers aroun# :D cities of /n#ia! &he factor of its success is that it has a tightly controlle# #istribution system on top of an e2ually controlle# pro#uction an# this in turn helps it keep its taste constant an# the company boasts of it too! &ropicana +e erage Co! recently announce# the company>s inclination to$ar#s bringing in an entire series of juices an# other health #rinks from its international portfolio into /n#ia in the coming years! &he &ropicana bran#, per se, has been positione# on the =health> platform! Pepsi also plans to gi e its juice bran# R $hich has seen many hur#les in the nascent an# niche juice market R a rene$e# thrust in the coming #ays! , price re ision of the bran#s is also on the an il! Since @;;:, &ropicana rope# in celebrities in the fiel# of nutrition an# health to sell its bran#s! Bn#er $hich they got reno$ne# people in the fiel# of health to recommen# their clients to use their bran#! &he list of names inclu#e# the likes of ,njali Mukherji, Sabina Sehgal Saikia an# Pan#ana "uthra, $ho promote the bran#, positione# as a health #rink, to their up$ar#ly mobile clientele! E en celebrity #octors an# pharmacists $ere inclu#e# in its list of marketers! &ropicana is also sol# through arious health clubs like &al$alkars, Personal Point, etc! in Mumbai an# 'elhi! /n the past as a part of its promotional acti ities, the company ha# con#ucte# a =&ropicana Qealth Run> in the capital, slate# for Eorl# Qealth 'ay, $hich $as on ,pril C, @;;:! &ropicana also runs a programme calle# =&he &ropicana Club> un#er $hich e ery time one buys a pack of &ropicana he earns points $hich he can collect an# e*change for a $i#e range of gifts an# also, as a member he gets uni2ue offers, e*citing gifts an# interesting information on keeping fit an# looking goo#! &he company is seen to intensify its #istribution net$ork, $ith a greater thrust on large institutions! ,part from retail an# consumer R le el promotions, &ropicana is being promote# through health bulletins an# health leaflets! &he company inten#s to continue $ith its =uncon entional> retail thrust! ,part from the @;,;;; to @F,;;; outlets across :D

cities that &ropicana has a presence in, the bran# is being place# across gymnasiums, fitness centers in F)star hotels, coffee shops, airlines, hospitals, offices an# health stores! &hese points of consumption are not conse2uential in pro i#ing high olumes, but important from the imagery point of ie$! &ypically, non)retail stores ha e been contributing :@ R :F < of the bran#s sales! &ropicana e okes a high bran# loyalty among health R conscious mi##le an# upper)mi##le class segments! &he company is seeking to project itself on the health platform an# has an a# spen# of aroun# @;< of its sales! &he bran#>s e*isting tagline of =&aste of Loo# Qealth> has no$ got an e*tension statement of ='on>t forget the juice>, =&ropicana :;;< pure fruit juice>! &ropicana is package# in a @;; ml slim pack 7$hich replaces its @F; ml pack9 an# :)liter in a flat pack tetra pack! &he company is seen to run promotions in coor#ination $ith its other offering like a scheme $here :O gm pack of "ays Magic Masala that comes free $ith a @;; ml pack of &ropicana! Eorl#$i#e, &ropicana has a host of juice bran#s un#er its belt! +ran#s like &$ister, 'ole, "oo?a, Fru ita an# Juice +o$l, $hich coul# fin# their $ay into the /n#ian market in the coming years! /t has #eci#e# to make changes in the composition of its juices to suit the /n#ian taste bu#s! For instance, reali?ing that /n#ians like a s$eet fla our, it #eci#e# to launch a separate s$eet orange juice pro#uct specifically for the /n#ian market! Since it coul# not #ilute its juice content, it #eci#e# to substitute part of it $ith grape juice to make it s$eeter! E en it>s launche# tomato an# mi*e# fruit juices ha e been altere# to suit the /n#ian palate! Currently, in terms of market share, &ropicana is belie e# to trail behin# ri al Real S'aburT but is not far behin# an# also has close to G;< market share of the estimate# Rs :;; crore bran#e# juice market! Pepsi sets the pace for back$ar# integration of &ropicana, as a first step to$ar#s back$ar# integration for its pure juice business &ropicana is foraying into contact farming of citrus fruits like oranges an# %eanu! Punjab) Jallo$al R has been chosen as the location for the project! &he N phase project in ol ing trials, nursery an# contract farming, is being pursue# jointly by Pepsi an# the Punjab ,gro E*port Corporation! &hrough in its infancy at the moment, the project ision ho$e er is of about se en years! /f successful, it $oul# mean :;;< locali?ation of orange juice an# it becoming the supply center to other regions! , present &ropicana has the follo$ing fla ours4 3range, -ature S$eet, ,pple, Lrape, Pineapple, &omato, Mi*e# Fruit! Slice4 PepsiCo in @;;@ poise# to make #eep inroa#s into juice #rink segment in /n#ia $ith se en ne$ ariants of its =Slice> bran#! For the first time in company>s history, a ="itchi> ariant of Slice $as intro#uce#! ,part from that, a gua a an# 3range fla ours $as also being offere#! ,part from @;; ml slim line cartons price# at Rs :; each, Slice juice #rinks is subse2uently ma#e a ailable in @F; ml returnable glass bottles as $ell!

&he company in este# significantly to bolster the Slice bran# in the year @;;@ an# plans to in est hea ily through the year $hile Slice is no$ a ailable in litchi, orange, mango an# Lua a fla ours, they are e*pecte# to be soon joine# by Slice Cocktails! PepsiCo is sourcing litchis from Mu?affarpur, gua as from %arnataka an# ,llahaba#, an# mangoes from Ratnagiri! Mangola4 Mangola, the other fruit)base# be erage in the PepsiCo>s list, has a healthy presence in Maharashtra! Pepsi Foo#s ac2uire# Mangola, originally a bran# of 'uke>s, $hen it officially steppe# into the #omestic market $hile Mangola>s #istribution is restricte# to Maharashtra6 Slice is a ailable in all markets! Pepsi, in association $ith foo#s an# toiletries major Qin#ustan "e er, launche# "ipton /ce# &ea in returnable glass bottles an# PE& bottles! /t has also intro#uce# Mirin#a in apple an# stra$berry fla ours! Pepsi ha# earlier sai# they planne# to re#uce their #epen#ence on cola an# bring it #o$n to G; per cent of total sales in the ne*t fe$ years! Pepsi came on aggressi ely $ith its 03ye +ubbly0 campaign! Coca Cola promise# consumers a #ate $ith ,ish$arya Rai $ith its 0&han#a ,ish Cash0 promotion! /t also promote# &humsBp through March an# ,pril $ith its 0Qai 'umK0 campaign featuring +olly$oo# actor ,kshay %umar! Parle ,gro4 Parle ,gro Pri ate "t# is looking at pro#uct e*pansion in its arious business segments to sustain gro$th in a sluggish market! /n the fruit #rink segment $here Parle ,gro has a hugely popular pro#uct =Mango Frooti>, it is planning to get into orange an# pineapple un#er the same bran# of Frooti! Ehile orange pulp $ill be importe# from +ra?il, pineapple $ill be source# from &hailan#! ,t the same time, it has also embarke# on stretching the franchise of its e*isting bran#sJ Frooti, ,ppy an# +ailley Mineral $ater! /t kno$s the market an# has sustaine# its bran#s in spite of the huge unorgani?e# segment! +esi#es, the company $ill use its e*isting #istribution net$ork to get into the ne$ categories! ,t the moment, its only a# antage is its #istribution strength! Parle ,gro boasts of a franchise net$ork $hich fe$ can match! /t has t$o #ifferent sets of franchisees for its packs S:: franchiseesT an# mineral $ater S:D franchiseesT that manufacture an# #istribute its bran#s! /t ahs also attempte# to enture into #irect #istribution by engaging special trucks to transport its bran#s to retail outlets! For instance, in Mumbai, it has F; trucks plying bet$een its factories an# the outlets! +esi#es, future plans inclu#e intro#uction of the same #irect #istribution system for its franchisees across the country! Flushe# $ith fun#s after selling of its portfolio of soft #rink bran#s, &humps Bp, "imca an# Ma??a an# bottling facilities to Coca)Cola the company has enough cash an# this is

e i#ent since it has not got liste#! /t also has a massi e #istribution net$ork to reach its en# consumer! +esi#es, the goo#$ill of the Parle bran# is a great help in its ne$ entures! &he =fresh n juicy> Frooti bran#, is #ominating the package# fruit base# #rinks category since its launch in :MDF! Frooti Mango, $hich has CF< market share in tetra packs, gre$ by a mo#est G< in @;;: accor#ing to 3RL)Marg #ata! "arger pack si?es S: literT an# more pure juices Ssuch as orange an# pineappleT $oul# soon appear un#er the Frooti bran#, taking on the e*isting competitors in these fla ours an# si?es R bran#s such as &ropicana, Real an# 3njus! Frooti has al$ays been positione# as a #rink for ki#s but no$ the company is looking for$ar# to position it as a #rink for the youth, especially, the college going teenagers! &his $as the basic rationale behin# the 'igen Perma Campaign, $here a real life, #o$n to earth person, $ho, like any college stu#ent likes to bunk classes, is a goo# sportsman an# is a popular figure in the college, $ith $hom the teenagers coul# actually associate themsel es $ith 'igen Perma! Parle ,gro>s pro#uct portfolio inclu#es ,ppy, Frooti an# -)Joi Sa milk base #rink, $hich are price# at Rs :;! -e$ PE& bottles ha e been intro#uce# in : liter an# F;; ml for mango Frooti at a price of Rs @D an# Rs :D respecti ely! /t has recently intro#uce# a green mango fla our in the tetra pack an# is also price# at Rs! :;! Parle ,gro>s has an enormous #istribution reach of :; lakh outlets, inclu#ing lea#ing hotels an# restaurants, eateries, super R markets, an# paan)shops! Mean$hile, Parle ,gro is planning to tap the rural markets $ith its strongest bran# Frooti! &here are plans to set up a separate #istribution in the pro#uct itself! /n keeping $ith market sentiments, cola biggies Coca Cola an# Pepsi, too, are focusing on inno ation in their non)cola portfolio! Coca Cola has launche# Maa?a in pineapple an# orange ariants in :@F ml tetra packs an# large family packs! /t recently starte# a ne$ facility in +areilly to cater to the gro$ing #eman# for Maa?a in north an# central /n#ia! /t is learnt that the company is also set to launch some 0niche0 pro#ucts! Parle ,gro has seen a tren# to$ar#s fruit)base# pro#ucts! Parle ,gro spent Rs F crore SRs F; millionT to relaunche# its flagship mango #rink, Frooti, $ith mo#ifie# packaging an# a ne$ a# campaign! /t launche# a gua a #rink, Frooti Lua a, in Mumbai an# other $estern regions in OFml packs price# at Rs @!F;! &he company is no$ out $ith ,ppy Fi??, an aerate# apple #rink in champagne)shape# PE& bottles! "aunche# in +angalore, it is being rolle# out in %olkata an# Chennai in F;; ml an# N;; ml packs retailing at Rs @F an# Rs :D, respecti ely! &he O; million case fruit be erage market ne er ha# it so goo#! 3f the Rs C,;;;)D,;;; crore SRs C;)D; billionT #rinks market, fruit be erages account for Rs F;; crore SRs F billionT, gro$ing at @F) N; per cent annually! "ike most #rinks, summer accounts for OF per cent of total sales!

Lo#rej4

Lo#rej Foo#s "imite# is into the business of manufacturing an# selling processe# foo#s an# tra#ing of egetable oil! &he company has a number of lea#ing cooking oil bran#s like Cook"ite, Lo#rej an# fruit juice bran#s like Jumpin, Is, refresh in its pro#uct portfolio! &he company>s main source of re enue is its oil tra#ing business, $hich makes performance of its business highly #epen#ent on commo#ity price tren#s! /t has N fruit be erage bran#s in its pro#uct portfolio, $hile Jumpin an# Is are national bran#s, Refresh is a ailable only in states of BP an# Rajasthan! Jumpin4 Jumpin bran# is positione# as a fruit #rink! /t is a ailable in the fla ours of orange, pineapple, apple an# mango! Jumpin is a ailable in @;;ml an# the price for all the fla ours are Rs :;! Is4 Is is targete# to$ar#s a#olescents positione# as nectar #rink! Is is a ailable in follo$ing fla ours litchi, mango an# gua a an# it is price# at Rs :F for the @F;ml pack! Refresh4 Refresh is positione# as a mass market #rink but targete# to$ar#s a#ults! Lo#rej /n#ustriesW foo#s #i ision $ith its IS fruit juice launche# in :MMD in litchi, gua a an# mango fla ours! E*otic blen#s of Lo#rej inclu#e fruit juice +erry +last Sstra$berry) cherry)black currantT an# &riple &ickle Sapricot)peach)appleT! &he ne$ range is price# at Rs :F for @;; ml an# Rs!OF for :;;; ml! Lo#rej Foo#s, 0&he i#ea is to come out $ith e*otic fla ours that $ill combine great taste $ith attracti e packaging for the youth!0 Eith the ne$ offerings, he e*pects to see a N;)G; per cent rise in sales! Lujarat Co)operati e Milk Marketing Fe#eration4 S,mulT Pitching in to pose further competition to the colas is the recent launch of ,mul Masti chhaas by the Lujarat Co)operati e Milk Marketing Fe#eration! ,mul has also a##e# t$o ne$ ariants )) stra$berry an# mango fla ours )) to its milk #rink bran# ,mul Cool! ,mul are currently selling G;;,;;; units of ,mul Cool per #ay $ith si* fla ours! &hat is @N per cent higher than last summer, $hen they ha# just four fla ours! Coming ne*t from the ,mul stable is Cool Cafe, a coffee #rink to be launche# in Mumbai, 'elhi an# Lujarat! Retailers, ho$e er, say that $hile such efforts lea# to a temporary re i al in offtake, sales ten# to slacken once the promotions en#!

Pro#uct

%i$i fruits are small o al fruits $ith a thin bro$n skin, soft green flesh an# black see#s! &hey are rich in many Pitamins, fla onoi#s an# minerals! /n particular, they contain a high amount of Pitamin C Smore than orangesT, as much potassium as bananas an# a goo# amount of beta)carotene!

,nti 3*i#ant properties of %i$i Fruit /t is important to note that ki$i fruits contain a remarkable amount of Pitamin C, E an# ,! Pitamin C is a $ater)soluble antio*i#ant that has been pro en to protect our bo#y from free ra#icals, #ramatically impro ing the health of in#i i#uals $ho consume# it regularly against all kin#s of #isease, from car#io ascular problems to cancer an# obesity! Pitamin E has been pro en to ha e similar effects, but is fat)soluble an# thus is complimentary to Pitamin C in its functions! %i$i fruits contain both these itamins in high amount, $hich help protect our bo#y against free ra#icals from all fronts! %i$ifruit see# are $here the most of the Pitamin E an# #ietary fiber are foun#! %i$i fruits ha e a high fiber content &he high content in #ietary fiber helps impro ing #iseases such as #iabetes, by controlling sugar le els, an# cancer color, since fiber bin#s to to*ic compoun#s in the colon an# helps us e*pel them! Fiber has also been pro en to re#uce cholesterol le els, impro ing the con#itions of patients $ith car#io ascular #iseases an# lo$ering the probability of heart attacks! Summary of %i$ifruit Qealth +enefits Eating ki$i fruit is clearly a healthy choice, particularly useful in these cases4 A Pre ents ,sthma A Pre ents $hee?ing an# coughing, especially in chil#ren A Protects our '-, from mutations A Pro i#es a healthy amount of antio*i#ants an# itamins A Qelps pre ent colon cancer thanks to a high fiber content

%i$i Fruit -utrition Content Research

-utrient Content

Lol# %i$ifruit :D: ugU:;;g Flesh

Lreen %i$ifruit :FD ugU:;;g Flesh

Main Functions Stabili?e P,/nhibit 3*i#ation 5 Free Ra#icals Pre ent &umor/mpro e Fecun#itySlo$ ,ging /nhibit 3*i#ationEnhance /mmunityParticipate /n '-, SynthesisSlo$ ,ging /nhibit Mutation Pre ent Cancer ,ccelerate CollagenSynthesis Stop +lee#ing ,ccelerate ,mino ,ci# Metabolism/nhibit 3*i#ation,cti ate FolacinE*pel &o*in Pre ent /nflammation /nhibit Cancer'eto*ification ,ccelerate Eoun# Close,nti)Cholesterin Pro i#e +aby -ee# ,mino ,ci#,ccelerate /mmunocyte ,cti ityPromote Secretion of Lro$th Qormone Prolactin an# /nsulin /nhibit 3*i#ation Pre ent CancerProtect '-, /nhibit MutationPre ent Car#io ascular 'iseasesSlo$ ,ging /nhibit 3*i#ationPre ent Cancer/nhibit

Pitamin E +earing Phenols

N!;@F mgU:;;g See#

@!C@m gU:;;g See#

Pitamin C ,nti)Scur y ,ci#

:NF!MO mgU:;;g Flesh

:FG!MF mgU:;;g Flesh

Chlorophyl

GD:!F; ugUg Peel

@@@!F: ugUg Peel

,rginine

;!;MFN< Flesh

;!;GON< Flesh

Se

N!:C ugU:;;g See#

:!FN ugU:;;g See#

Polysacchari#e

G!FO gU:;;g Peel

N!GG gU:;;g Peel

MutationRepair 5 Shiel# Cells"o$er +loo# Llucose/mpro e /mmunity,ccelerate '-, SynthesisStrengthen Marro$ Qematopoiesis Polyphenol G!FO gU:;;g See# D!GCm gU:;;g See# /nhibit 3*i#ation Con ergenceStop blee#ing,ntisepticPre e nt Car#io ascular 'iseases Se#ation Re#uce +loo# Pressure /mpro e Se* Function

Monkey Peach ,lkali

;!D@ < See#

;!DN < See#

Pro#uct 'escription4 &his pro#uct is actually a mi* of @; percent pure ki$i juice, $ater, an# cane sugar! Eith a strong, accurate ki$i fla or, this coul# actually turn out to be a pretty tasty orange juice substitute R a possible moti ation for placing a high) isibility Pitamin C label across the front of the package! :T %i$ifruit Juice in @F;ml PE& +ottle

Pro#uct co#e4 %S@F;M" 'escription4 %i$ifruit Juice Packing4 @G I @F;ml Lross Eeight4 :@!Fkg ,ppro*! 1ty per @;ft FC"4 :G;; Cartons &his Rea#y)&o)'rink ariant offers an option to retail operations catering to customers looking for healthy, thirst 2uenching single ser e options! &he $ell)#esigne# packaging ensures that it stan#s out $hether it be #isplaye# in normal shel es or $alk)in chillers! /t is also i#eal for foo#ser ice operators looking to offer single ser e items on the be erage menu! /n entory control becomes less complicate# an# %i$iJoos are #efinitely

a refreshing a##ition to any be erage menu! Store# at an ambient temperature a$ay from #irect sunlight or heat, the pro#uct has a shelf life of one S:T year from #ate of pro#uction! /t shoul# be consume# imme#iately upon opening an# %i$iJoos are best ser e# chille#! MRP of this @F; ml bottle# #rink $ill be Rs! N;!

@T %i$ifruit Juice :!@ liter Concentrate

Pro#uct co#e4 %C@FFFM 'escription4 %i$ifruit Concentrate Packing4 :@ * :!@lt Lross Eeight4 :O!Fkg ,ppro*! 1ty per @;ft FC"4 :;;D Cartons

&his pro#uct comes attracti ely package# in a :!@ "itre PE& +ottle $ith a recommen#e# #ilution rate of 3ne S:T part concentrate to Se en SCT parts $ater! &his ariant offers alue for money an# con enience for those $ith large families or entertains fre2uently! /t is also i#eal for the foo#ser ice establishments as it re2uires minimal storage space an# no refrigeration is re2uire#, allo$ing them to cater for large functions! Store# at an ambient temperature a$ay from #irect sunlight or heat, the Concentrate has a shelf life of one S:T year from #ate of pro#uction! Bpon opening, the pro#uct shoul# be kept refrigerate#! %i$iJoos are best ser e# chille#! MRP of this :!@ "t bottle# #rink $ill be Rs! :N;!

NT %i$ifruit Juice 'rink in &etra +rik ,septic :litre an# @ litre Slim line Re Cap

Pro#uct co#e4 %S;:&PS" 'escription4 %i$ifruit Juice 'rink Packing4 :@ I :lt, :@ I @lt Lross Eeight4 :Nkg ,ppro*! 1ty per @;ft FC"4 :NF; Cartons

&his &etra +rik ariant is BQ& processe#, contains no preser ati es an# comes $ith a con enient re)sealable non)#rip spout! /t is an i#eal choice for acti e families or in#i i#uals $ho $ant a con enient yet nutritious thirst 2uencher! Eith this a##ition, %i$iJoos has no$ a $i#e range of packaging choices to suit both consumers an# retailers! Foo#ser ice operators looking for a shelf safe6 space sa ing re)sealable packaging can no$ opt for this ariant! &he &etra +rik ariant has a shelf life of one S:T year from #ate of pro#uction $hen store# at ambient temperature! %eep a$ay from #irect sunlight an# heat! %eep refrigerate# upon opening! %i$iJoos taste best $hen ser e# chille#! MRP of this : lt &etra pack $ill be Rs! M; an# MRP of @ lt &etra pack $ill be Rs! :D;! !

GT %i$ifruit Juice in F litre Q'PE &ub

Pro#uct co#e4 %S;FFFM 'escription4 %i$ifruit Juice Packing4 @G I Flt Lross Eeight4 @Nkg ,ppro*! 1ty per @;ft FC"4 DG; Cartons &his is a Rea#y)&o)'rink ariant i#eal for foo#ser ice operators catering for large olumes! &he pro#uct offers a refreshing change to your be erage menu an# is a ersatile ingre#ient for concocting cocktails or other non)alcoholic cocktails! Storage is con enient, as it re2uires no refrigeration! &he pro#uct has a shelf life of one S:T year from the #ate of pro#uction $hen store# at ambient temperature a$ay from #irect sunlight an# heat! &he pro#uct shoul# be kept refrigerate# upon opening! %i$iJoos are best ser e# chille#! MRP of this F lt Q'PE tub $ill be Rs! G;;!

Future Pro#ucts4 A ,erate# %i$i #rinks

A %i$i %ra?e S%i$i)apple)lemonT A Lol# %i$ifruit Juice A %i$i $ine Packaging4 Juices can be foun# in e ery type of packaging! /n early #ays, cans an# glass bottles $ere the only a ailable types of packaging! &o#ay, the assortment inclu#es PE& bottles, sports bottles an# brick packs! /ntro#uce# to re#uce shipping $eight or to allo$ small chil#ren to pour their o$n juice, PE& bottles pro i#e another benefit4 shatter) resistant properties! Juices foun# in refrigerator case typically come packe# in gable)top cartons! &he ne$est inno ation in cartons is the re)closable plastic cap! Some single) ser ing juice #rinks come in sports)top PE& bottles! Some companies concentrate on proprietary packaging, $ith easy grips or unusual eye)catching shapes! Packaging is an important part of promotion to#ay hence the company has #eci#e# that %i$iJoos $ill be ser e# in transparent PE& bottles for all the 2uantities an# $ill carry the company "ogoU Symbol, nutrient alue of the juice an# the statutory re2uirements like the ingre#ients etc!

%ey Success Factors4 A Processing an# Packaging technologies use#4 State of the art pro#uction an# packaging technology is a must in this in#ustry! &his gi es an e#ge in packaging an# ensuring freshness of pro#uct besi#es enhancing the image! A 'istribution Strategies, "ogistics an# reach in the market4 , strong #istribution net$ork is essential for ensuring a ailability to fight competition from the other players an# also the substitute that ha e a strong #istribution reach! A Regional taste preferences4 Companies shoul# take into account the regional taste preferences an# buil# pro#ucts to ser e the same! Parious concoctions an# formulations in the BS an# other foreign markets suggest that such strategy is necessary to li e the image of the company an# remain in the forefront! A Pro#uct portfolio an# ariants pro#uce#4 /nno ations in terms of ethnic fla ours an# mi*es $ill pay off! Eith respect to X%i$iJoosY $e must make sure $e increase our pro#uct baskets as $e can>t e*ist $ith only one fla our an# many fla ours $ill also help in le eraging an# ensuring that there is optimum utili?ation of resources!

A Sourcing of ra$ materials4 Llobal sourcing strategy $ill gi e an e#ge o er other players in terms of both cost an# 2uality a# antages!

A Fle*ible an# effecti e marketing mi*4 &he pro#uct mi*, promotional mi*, pricing mi* an# #istribution mi* shoul# be ma#e effecti e an# shoul# be fle*ible in all sense it shoul# help us to combat the primary competitors i!e! players in the fruit be erage market an# the substitutes i!e! soft #rinks, fla oure# milk, mineral $ater an# unbran#e# sector! A Strategic alliances an# joint entures4 Strategic alliances an# joint entures help in gaining competiti e a# antage in packaging, #istribution an# pro#uct formulations! SE3& ,nalysis4

Strengths4 A /nno ati e fla our hence $e are boun# to get the attention $ith proper communication! A Committe#, capable an# ambitious management! A Ee can gain incenti es as $e $ill be a SS/ an# so $e can pass these to capture more market! A Fle*ibility in our operations as initially $e $ill be confine# to fe$ cities so can focus our efforts on the tasks!

Eeakness4 A 3ur #istribution set up initially $ill be $eak $hen compare# to the others in the market! A %i$i as a fruit is ne$ in the market an# not all people take the risk of e*perimenting $ith taste! A Ee are entering the market $ith only one fla our an# our ne*t fla our $ill be out only after si* months of the first launch! A 3ur financial constraints $ith respect to our competitors #eman# that our resources are use# optimally! A Ee $ill not be able to price our pro#uct lo$er than the others in the market as $e ha e a longer #istribution channel an# managing this channel also $ill be an important task!

,lso as our pro#uct is not a ailable in /n#ia its cost of ac2uiring increases an# therefore it cannot be sol# at a lo$ price in the initial stage!

3pportunity4 A &he market is in a gro$ing stage an# fairly small in terms of market share as compare# to other thirst 2uenching an# healthy #rinks so at this stage our entry is e*pecte# to be notice#! A &he market has a presence of only fe$ players an# they are not too aggressi e in their acts! A More an# more people in the urban areas are getting health conscious an# are making fruit juice a part of their #aily #iet! Qence the market is gro$ing! A &he go ernment policies are e*pecte# an# are sho$ing tren#s to encourage the foo# processing in#ustry! A &he ki$i fruit can be then culti ate# in /n#ia in the regions of Qimachal Pra#esh, Bttranchal Pra#esh, Sikkim, ,runanchal Pra#esh, Meghalaya, Jammu an# %ashmir an# -ilgiri Qill, to cut #o$n the cost of imports of the fruit! &hreat4 A 3ur competitors are #eep pockete# an# they coul# harm us by getting aggressi e in their promotional acti ities! A &he competitors ha e strong bran# images in the market because of their other businesses an# their presence in the market from an early stage! A /n#ian market has characteristic of ser ing a $i#e ariety people $hich is a challenge for all the marketers! A 3thers can a#opt the fla our an# the alue of a uni2ue fla our coul# be neutrali?e# soon! Marketing Strategy4 Marketing Summary4 Pursuant to our company policy stating 01uality First, Cre#it Prominent0, $e process our %i$iJoos $ith strict pro#uction stan#ar#, 2uality control an# sophisticate# processing technology, $e at all time pro i#e our consumers the natural an# healthy %i$ifruit juice! %i$iJoos is a ne$ fla our in the market an# the company is also ne$ so its marketing bu#get cannot be limite#! So the strategy $ill be to enter the market $ith a big bang! 'e eloping isibility an# bran# e2uity is the key! %i$iJoos $ill be a# ertise# in #ifferent me#ia $ith respect to our target market i!e! the $omen of the house an# chil#ren $ho are

an important influencing factor in to#ay>s scenario! &he teens are the most $ho like to try out ne$ an# #ifferent pro#ucts so e en they are an important target au#ience! /n a##ition to the a# ertisements $hich $ill be use# to #ri e consumer sales, %i$iJoos $ill le erage a net$orking campaign $ith respect to the #istributors an# sale promotion at the points of purchase i!e! local restaurants, gyms etc! to #ri e commercial sales! %i$iJoos $ill be on the shelf in all markets by :Fth February, the company $ill start supplying its stock by Oth February! &he promotional acti ities $ill start from :@thFebruary! Mission4 %i$iJoos mission is to pro i#e the highest 2uality of fruit juices! Ee e*ist to attract an# maintain customers! Ehen $e a#here to this ma*im, e erything else $ill fall into place! Ee $ill ensure that our pro#ucts $ill e*cee# the e*pectations of our customers i!e! $e #e elop a competiti ely superior alue proposition an# alue) #eli ery system! Marketing 3bjecti e4 A Maintain positi e an# stea#y gro$th each month! A E*perience an increase in ne$ customers i!e! $e ha e to ensure that our pro#ucts ha e a high trial rate $hich $ill help us to turn these ne$ customers into long term customers! A Lenerate bran# e2uity at the markets $e are catering to as $ell as $ithin the supplier an# #istribution net$orks! Financial 3bjecti es4 A Reali?e a N< increase in the gross profit margins through efficiency gains e ery year! A Re#uce the logistic cost associate# $ith pro#uct #eli ery by :;< by the en# of the first fi e year of operation! &arget Markets4 A &he $omen of the house A Chil#ren A &he teenagers A /n)home consumption A 3ut of home consumption &he $omen of the house an# chil#ren are an important influencing factor in to#ay>s scenario! ,s the %i$iJoos contains lots of health benefits, the $omen $ho care for her family $ants her family to be healthy an# so are they are targete#!

&he chil#ren are attracte# to the beautiful a#s an# #eman# for the pro#ucts as they $ant to e*periment things just for the sake of it or for their self satisfaction! &he teens are the most $ho like to try out ne$ an# #ifferent pro#ucts! &o#ay>s teens are the most health conscious an# put in lots of efforts to be healthy! So e en they are an important target au#ience! /n) home consumption4 &his group of people buys fruit juices for home consumption an# in many case treate# as grocery item an# is on the shopping list an# forms an important part of their #iet! For an a erage /n#ian population juice consumption is seen as a lu*ury an# is a ery urban phenomena as people in the urban are getting more an# more health conscious an# relating an# accepting juices as a healthy social #rink! &hese people are typically sophisticate# an# are e*pose# to the i#ea of healthy li ing an# are concerne# of the $ell being of their families! Bsually the la#y of the house takes the buying #ecision but she is influence# by her offspring>s many times to the e*tent of bran#s an# fla ours! 3ne of the strong characteristics features $hich is common throughout our target au#ience is that it is consi#ere# that juice is fresh only $hen it is e*tracte# on the spot for consumption purpose an# it is consi#ere# to be better than the package# ones a ailable in the market! &his min# set $ill ha e to be change# an# the customers $ill ha e to be con ince# that %i$iJoos is fresh, has all the nourishments intact an# is a ailable $ithout the hassle of e*traction for consumption!

3ut of home consumption4 &his consumption pattern is usually obser e# in people $ho feel the nee# to 2uench their thirst, get refreshe# or both! &hese types of people are important of %i$iJoos as they are the people $ho $ill try the pro#uct in small 2uantity an# gi e us an in roa# in the home for in home consumption, $hich is our focus area! /f this segment is satisfie# then they $ill start personal use of %i$iJoos an# they $ill also act as a source of mouth ) to ) mouth publicity, $hich is consi#ere# to be one of the best in its kin#! &his segment is challenging one as there is a #ual pattern of consumption $hich mainly e*ists here i!e! firstly an in#i i#ual #eci#es if heUshe $oul# like to ha e a fruit juice or a substitute like carbonate# soft #rinks, $ater, fla oure# milk, etc! then if heUshe chooses

fruit juice, they ha e to chose from the a ailable alternati es then he makes a choice among the a ailable bran#s $ith respect to the percei e# alue an# its cost! Such type of consumption is usually seen6 A 3n roa#s i!e! in front of the general stores, rail$ay stations, bus stan#s, airports etc! A Entertainment ?ones like amusement parks, cinemas, parks, theaters, etc! A Eating)places like restaurants, college canteens, hotels, etc! A Eorking places like offices, aerobics classes, gymnasiums, places of $orship etc! &he key to ser ing this segment $oul# be to be a ailable an# isible at points of purchase an# inclu#ing the person to buy, $ith effecti ely communicating to them that %i$iJoos is a healthy alternati e to satisfy the thirst ensuring taste, fun an# goo# health! /t is positi e that fruit juices are being percei e# as anytime be erage! Leneration no$ is as much incline# to sipping fruit juices as colas, $ith teenagers #ri ing the ma*imum trials!

Positioning4 %i$iJoos $ill position itself as a no R compromise #rink $here a person #oes not ha e to make any compromise $ith the fun element of ha ing the refresher an# the health element an# that it is also socially appreciate#U accepte#! /t $ill be communicate# to the customers that nor #o they ha e to make any compromises an# that nor #o the pro#ucers make any compromise in bringing them %i$iJoos $hich is ma#e from fresh ki$i fruit an# is pro#uce# un#er a $ell controlle# an# a healthy en ironment! &o put our point for$ar# initially $e $ill be using the tag line4ZZZZZZZZ!an# $e $ill be promoting the ki$i fla our as XE*otic %i$iY!

+ran# "ogo4

Strategies4 &he single objecti e is to position %i$iJoos as the natural an# healthy %i$ifruit juice in the cities it is ser e#, comman#ing a N;< market share $ithin F years! &he marketing

strategy $ill seek to first create customer a$areness regar#ing pro#uct, #e elop the customer base an# $ork to$ar#s buil#ing customer loyalty! %i$iJoos seeks to communicate the message that it is the natural an# healthy %i$ifruit juice in the market an# $ill help them in not compromising on fun an# health an# that a customer can ha e both! &his message $ill be communicate# through a communication toolsU promotional mi*! ariety of metho#s $ith the

&he a# ertisements $ill be for the purpose of buil#ing an# registering %i$iJoos as natural an# healthy %i$ifruit juice an# not only for our intro#uctory fla our but also for the fla ours in future! &he a#s an# the promotional acti ities $ill be concentrating only on the cities in $hich %i$iJoos is ser e# hence the main $eight age $ill be gi en to the local me#ia an# a# ertisement on the national le el only to the objecti e making our presence felt! Marketing Mi*4 Marketing mi* comprises of approaches to price, #istribution, a# ertising an# promotion! Pricing4 Price is the marketing mi* element that pro#uces re enues, the others pro#uce costs an# it is also one of the most fle*ible elements as it can be change# 2uickly, unlike pro#uct features an# channel commitments! /n#ia is kno$n as a price sensiti e market i!e! an /n#ian customer $ants more alue at lo$ price! &he company>s objecti es $ith regar#s to pricing is to sur i e the resistance from the e*isting players, ma*imi?e profits an# increase its market share in the fi e cities it is catering! %i$iJoos>s pricing $ill be a premium pricing! ,s $e are targeting the sec , an# sec + of the mi##le class an# also the Elite class the price must be affor#able to consumers! Consumers are rea#y to shell out little e*tra money for the e*otic an# classic #rink that has many health benefits! E en though $e are catering only one fla our initially the pricing is close to the competitors pricing! %i$iJoos $ill be price# as follo$s4 @F; ml R Rs!N; ;: liter R Rs! M; :!@ liter R Rs! :N; ;@ liter R Rs! :D; ;F liter ) Rs!G;;

'istribution4 &he #istribution or reach factor is a marketing mi* element that nee#s to be monitore# o er a perio# of time! Bnlike pro#uct impro ement or positioning strategies that are e*tremely sensiti e to consumer preferences an# changes, #istribution inertia coul# #a$n on the company o er a perio# of time! ,n attempt to link #istribution $ith the changing en ironment $ill ensure that a great #eal of slo$ #amage is a erte#! ,s consumer beha iour changes, competition picks up an# the pro#uct mo es through its life cycle, ne$ channels may ha e to be consi#ere#, e aluate# an# chosen! &he company Shreeji Enterprises P t! "t# has its %i$iJoos manufacturing an# packaging plant in -asik! &he %i$i fruits $ill be importe# from -e$ .ealan# base# company .espri /nternational "imite#! &he company $ill be mo ing in the first phases i!e! the first year $e $ill ha e an aim of entering only fe$ major cities of /n#ia an# establishing our bran# $ith %i$i fla our $hich $ill be seen as a launch)pa# for our other offerings i!e! fla ours! &he initial launch $ill be in the follo$ing cities4 A Chennai A +angalore A 'elhi A Mumbai, Pune an# -asik A %olkata &he transportation to the cities $ill be basically through rail an# roa# #epen#ing on cost effecti eness! &he in entory le el $ill be #eci#e# $ith respect to the season an# in coor#ination $ith the #istributor an# the company representati es! &he company $ill ha e its representati es positione# at each city that $ill coor#inate $ith the #istributors an# the company $ill interact $ith the retailer>s inor#er to ensure the company first han# information about the pro#uct $ith relation to the customers! &here $ill be F representati es statione# at each city $ho $ill ha e to make G; calls a #ay in their respecti e territories! &o keep the channel acti e an# result oriente# follo$ing initial steps $ill be taken6 A &hey $ill be gi en #iscounts on cash purchases! A &he goo#s $ill be a ailable on cre#it basis also! Retailers ha e to be segmente# base# on Polume, e*clusi eness, complementary pro#ucts han#le# an# basic re2uirement of refrigeration facilities, $hich is a must for our pro#uct! &hese factors $ill be gi en consi#eration before incenti e schemes are $orke# out!

%i$iJoos $ill be markete# through #ifferent channels! ,ll #ifferent si?es $ill be a ailable at places $here buyer buys pro#ucts in greater olume6 A Supermarkets A 'iscount stores like +ig +a?aar, ,pna ba?aar, etc! A Qyper Mall A Petrol pumps A Chemists, Leneral an# Con enience stores A Qealth clubs, Lym, Lymkhanas etc! A Entertainment ?one4 &heaters, Cinemas, Parks, ,musement parks, Lame Parlours etc! A /ce)cream Parlours A Qotels 5 Restaurants A +akeries /n certain areas such stores may not e*ist so in these areas the bottles $ill be a ailable at specific stores at the #iscretion of the representati es an# #istributors, these stores shoul# be able to ser e the basic i#ea! &he effecti eness of our channel $ill only be kno$n $hen $e assess our chosen channel on the follo$ing criteria4 A ,re the customers e*pectation been met by usK A ,re the channels ser ing the targete# segmentsK A ,re our interme#iaries moti ate#K Future thought on #istribution4 /n our category if $e are to become a national bran# $e $ill ha e to ha e a number of manufacturing plants close to markets to ensure sa ings on #istribution costs $hich in turn coul# our bran# a competiti e e#ge $ith regar# to the pull at the retailer le el through goo# margins to the retailers! /n the plan to go international our %i$iJoos $ill be a ailable in Japan, France, Lreece, Qong %ong, Macao an# China mainlan# in the future!

Promotional Strategy4 &he promotional efforts $ill be on t$o fronts i!e! on our #irect customers an# the en# consumers! &his shoul# ensure %i$iJoos a push from the #istribution an# a pull from the customers!

,ll our promotional efforts shoul# ser e some basic criteria like the acti ities shoul# carry a feel goo# appeal an# shoul# enhance emotional attachment of the target $ith %i$iJoos! %i$iJoos $ill be a# ertise# in cost effecti e me#ia like ne$spapers, ra#ios, hoar#ings, at bus stan#s, an# the most important an# effecti e $ill be through &P a# ertisements! &here $ill be some cosmetic ariations of these a# ertisements $hen they are launche# across the country! Regional celebrities $ho appeal to consumers may also be use# in a# ertisements inten#e# for arious regions these celebrities $ill represent our positioning! Sales Promotion4 Ee $ill be tying up $ith fe$ other marketers an# piggy backing our pro#uct on theirs6 this is e*pecte# to gi e us access to the shopping list an# homes of our target! Marketers that $e inten# to tie up $ith $ill be the ones that ha e a place in the shopping list of the la#y of the house e!g! bran#e# $heat, salt, fro?en egetables, maga?ines etc! &he company $ill also tie up $ith supermarkets an# other stores, $hich are mainly olume oriente#, by piggy backing our pro#uct on their in)house pro#ucts! +oth the abo e routes $ill help us in sampling our pro#ucts to our target customers an# in the right manner! ,ttention $ill be gi en to the presentation part too, P3P materials, store #isplays, stickers etc! $ill be use# to create a$areness at the retail outlet! ,# ertising4 ,# ertising $ill be e*ercise# $ith a me#ia mi*, $hich $ill consist of4 A Print Me#ia4 Print Me#ia $ill be use# in the form of ne$s papers of arious languages! Print me#ia $ill be mainly use# $ith a purpose of communicating an# complimenting our sales promotion schemes to pursue an# gi es us isibility! A ,u#io isuals4 &ele ision as a me#ia $ill be use# to inform the 2ualities an# benefits of %i$iJoos an# gi e us isibility an# buil# the bran# image $ith the customers! &he combinations of &P channels $ill be use# at #ifferent inter als! &he channels $ill be selecte# keeping in min# our target i!e! the la#y of the house R channels sho$ing goo# &RP ratings for their soaps6 the influencers i!e! her offspring R music, mo ie channels, cartoons, etc! A ,u#io4 Ra#io $ill be a key element in our me#ia mi* as it is cost effecti e an# $ill co er our catering cities precisely! Bn#er the bran# name $e $ill be running contests, sponsoring

programme, etc! &his $ill help us reach out to our target au#ience an# the influencers! A 3ut#oor4 3ut#oor communication $ill be #one to help us get the isibility i!e! $ith the help of Qoar#ings, $hich $ill be place# at areas that are prone to traffic jams an# at toll Stations! Rail$ay stations in Mumbai $ill be a goo# target area for such print me#ia as it also has ma*imum isibility because majority people tra el #aily by trains to $ork! /n respect of this me#ia the company $ill be ery selecti e! A Posters4 Posters $ill be create# by the company #uring the e ents an# $ill be carrying the company logo, bran# name an# the picture an# the tag line! A Public Relation4 &he company $ill be a part of e ents an#Uor $ill also be organi?ing its o$n e ents! &he e ents $ill be chosen on the core alues of community relation an# $hole family participation! &he company $ill be a part of chil#ren an# youth in ol ing e ents like collegeU school festi als, meets, etc an# only use these as a platform to getting closer to their influencers an# sample their pro#uct at a concession or commission basis! A Eorl# Ei#e Eeb4 Ee $ill make our presence felt on the internet by hosting a $ebsite for the bran# %i$iJoos $hich $ill be name# X$$$!ki$ijoos!comY $hich $ill6 &he $ebsite $ill be imparting the information about our pro#ucts, 2uality an# alues i!e! history of ki$i, its culti ation, its benefits etc! Run online contests Li e health tips Li e recipes 3pinion section ) person is free to e*press his thoughts an# fee#backs &he $ebsite $ill be a tool to get closer to our customers an# un#erstan# them better an# $ill ser e an entertainment an# utility alue!

&ime frame4 ,n assortment of promotional tools $ill be use# to increase isibility for %i$iJoos but the promotional acti ities $ill be concentrate# #ifferently $ith relation to the seasonal pattern in the country! /n#ia is a country $ith arying climate) $inter, summer an# monsoon Shea y in $est coast bet$een June an# September $here as in East coast #uring mi# 3ctober to 'ecemberT! &hough the promotional acti ities $ill be continuous

throughout the year but the #egree an# combination $ill ary! &his is intone to the perspecti e of the target market $here it is notice# that soft #rinks are consume# less #uring the $inters an# the monsoon perio#! Marketing communication bu#get4 /n the initial perio# the marketing communication bu#get appro e# by the company is Rs! D; lakh to ma*imum of : crore! "ater $hen our pro#uct portfolio is e*pan#e# i!e! $ithin a span of one an# a half years from commencing operation the company $ill a#opt the percentage of sales metho# i!e! the company plans to spen# :F< of sales on promotional acti ities!

Marketing Research4

'uring the #e elopment of the marketing plans, se eral focus groups $ill be use# to gain insights about our customers! &hese focus groups $ill pro i#e us $ith helpful insight, $hich $ill compliment the #ecision making process! ,n a##itional source of #ynamic market research $ill be the fee#back mechanisms $ith the help of our $ebsite X$$$!ki$ijoos!comY , the contests $hich the company $ill be a part of an# the primary research $hich may be #one by us or another party if felt the nee# or in combination! &hese $ill be the steps $hich $ill be taken to un#erstan# the bran#s position in the customers min# an# $ill ser e the purpose of being close to our customer to un#erstan# him better! Shreeji Enterprises P t! "t# $ill $ork har# in analy?ing an# implementing suggestions in or#er to impro e its offerings a$ $ell as to sho$ its commitment to the customer an# con ey to them that their suggestions are alue#! ,n important source of information $ill also be our competition! &he company $ill keep an eye on the competitor>s acti ities as they are a constituent of our en ironment an# their acti ities are boun# to affect us! &his $ill be #one $ith the help of the secon#ary #ata a ailable an# primary #ata from our customers, our channel members an# others!