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“Marketing strategy of Frooti in Jharkhand & its Marketing mix
Project submitted
In
Partial Fulfillment of the Requirements for the Award of Post Graduate Diploma in Management
(Recognized by AICTE)
Dayananda Sagar Business School
Submitted To: Submitted By:
Prof. Parmeswaran sir Ram sevak yadav
DSBSPGDMA09033
Acknowledgement
This research in itself is an acknowledged to the inspiration, drive,
technical assistance contributed to it by many individuals. This research
work would have never been completed without the guidance and
assistance that I received from time to time during the whole research
process.
It is my great pleasure to place a record of sincere thanks and gratitude
to Mr. R. R. Bakshi (general manager) & Mr. Shashi Shekhar
SWASTIK FRUITS PRODUCT PVT. LTD., RANCHI,
JHARKHAND.
I express my sincere gratitude and ineptness to my Internal Guide Prof.
Parmeswaran sir (Faculty-PGDM), Dayananda Sagar Business
School, Bangalore for giving me an opportunity to enhance my skill in
the field of my project.
RAM SEVAK YADAV
DSBSPGDMA09033
Declaration
I Ram sevak yadav , declare that this project report entitled
“marketing strategy of frooti in Jharkhand & Its marketing mix ” is an
original piece of work done and submitted by me towards partial
fulfillment of my Post Graduate Diploma in Management , under the
guidance of “ R.R.Bakshi (GM of frooti)& Parameswaran sir (faculty
of PGDM)
Date:
Place: Ranchi Signature
C O N T E N T S
Sl. No. Topic
1) CERTIFICATE
2) DECLARATION
3) ACKNOWLEDGEMENT
4) CHAPTER – I
Introduction
Scope of project
Objective of project
Hypothesis
5) CHAPTER – II
Company profile
Industry profile
Beverage preparation section
Sidel section Marketing strategy
Marketing Mix
6) CHAPTER – III
Research Methodology
7) CHAPTER – IV
Marketing survey & Data Analysis
Testing of Hypothesis
8) CHAPTER – IV
SWOT Analysis
Recommendations
Suggestion
9) CONCLUSION
10) LIMITATION
11) BIBLIOGRAPHY
12) QUESTIONAIRE
CHAPTER- I
INTRODUCTION
A soft drink is a beverage, often carbonated, that does not contain alcohol.
(Carbonated soft drinks are more commonly known as soda, pop, tonic, or soda
pop in parts of the United States and Canada, or fizzy drinks in the U.K.;
sometimes called minerals in Ireland) The name "soft drink" specifies a lack of
alcohol by way of contrast to the term "hard drink". The term "drink", while
nominally neutral, often carries connotations of alcoholic content. Beverages like
colas, sparkling water, iced tea, lemonade, squash, and fruit punch are among the
most common types of soft drinks, while hot chocolate, hot tea, coffee, milk, tap
water, alcohol, and milkshakes do not fall into this classification. Many carbonated
soft drinks are optionally available in versions sweetened with sugars or with non-
caloric sweeteners
SCOPE OF PROJECT
1. Detailed study of the noncarbonated soft drinks industry in India
2. Analysis of Frooti’s performance against the other prevailing
noncarbonated soft drinks brands in the country.
3. Analyzing consumer perception based on various parameters such as
purchase frequency, effect of sales promotion schemes, brand attributes and
consumer loyalty, packaging ,
OBJECTIVES OF THE PROJECT
1. To study the taste and preferences of the consumer
2. To study the marketing strategy of frooti in jharkhand.
3. To study the marketing mix of Frooti
4. To study the market share of Frooti in the non-Carbonated Soft
Drink (NCSD) category
HYPOTHESIS1.
A. Null Hypothesis
H0=Fruit Drink is the preferred attribute which customers look for in Frooti
B. Alternate Hypothesis
H1 = Fruit Drink is not the preferred factor for which customers looks in Frooti
2.
A. Null Hypothesis
H0 = frooti is a child drink
B. Alternate Hypothesis
H1= frooti is not a child drink
3.
A. Null Hypothesis
Ho = Frooti is readily available
B. Alternate Hypothesis
H1= Frooti is not readily available
COMPANY PROFILE
A House Of Diversified Excellence
The SWASTIK GROUP established in the year 1961 is one of the leading trading houses in eastern India. With a diversified activities it is also engaged in the providing engineering, management and financial consultancy services in the field of infrastructure development from the concept to commissioning. As a trading company engaged in catering the requirement of Mining, Construction Power Plants, Forging, Casting and Export Etc. SWASTIK GROUP has played a significant role in the development of Indian Industry and Infrastructure Projects. We at SWASTIK aim to provide most effective and prompt after sales services for the equipments sold by us through trained personnel and after sales services for the equipment sold by us through manufacturing plant-trained personnel and experts.
CHAIRMEN'S MESSAGE
We at SWASTIK GROUP are committed to give our customers the best possible products & services at most competitive prices as per agreed standards and within the stipulated time frame, to their entire satisfaction.
We shall strive relentlessly towards a Zero-defect culture through the commitment of each and every member of our Company.
And of course, we shall not stop there, but keep on going………….
Hanuman Sarawgi(Chairman)
VISION
To be known and identified as an ethical, trust worthy and dependable company relied upon by clients, offering real and lasting solutions at an affordable cost.
OBJECTIVE
To be partners in progress by assisting our clients in optimizing their potential to achieve corporate goals by offering “THE SOLUTION”.
PROMOTORS
HANUMAN SARAWGICHAIRMAN
SWASTIK GROUP OF COMPANIESSWASTIK HOUSE, GANDHI CHOWK,UPPER BAZAR, RANCHI - 834001JHARKHAND.
Born at Ranchi in a respectable Jain (Agarwal) family. He had his education in Ranchi Zila School & St. Xavier's College, Ranchi. He played a significant and important role in organizing and managing large number of Educational, Cultural, Social, Medical, Service, Sahitya, Art & Trade Organizations.
He has received many recognition, citations & Awards including SAMAJ RATNA, Hony. Degree of D.R.Lit.
BISHWANATH SARAWGI
DIRECTOR
Mr. B. N. Sarawgi is B.E, FIPE, FIE and since 1976 he is with the group as Senior Director. He has 30 years of experience in project marketing. He has excelled as a consultant in engineering projects in the Indian sub continent.
E-Mail:- [email protected]
BINOD SARAWGI
DIRECTOR
Mr. Binod Sarawgi is B.Com., LLB and is Director of the group company. He has experience of more than 28 years in marketing and administration. He is responsible for group activities in mining and construction, power plants, electrical equipments and the export business.
E-Mail:- [email protected]
BINAY SARAWGI
DIRECTOR
Mr. Binay Sarawgi is B. Sc. is having 22 years of experience with the group and is responsible for the general administration, finance and trading activities of the group Companies. He is also responsible for the franchise units of Frooti, Appy Fizz and Bailey mineral water.
Mr. Binay Sarawgi was born on 25th April 1964 at Ranchi in a respectable Jain (Aggarwal) family.He is the youngest son of Shri Hanuman Sarawgi, a renowned Philanthropist and a well known social leader. He completed his education from St. Xavier's School and Ranchi College, Ranchi
RICHA SARAWGI
DIRECTOR
Richa Sarawgi has an M. Sc. International Business Management degree with 3 years of total experience including 6 months of experience in exports. Currently she is assisting in the infrastructure projects at Madhya Pradesh and Bihar apart from managing Business Development.
Frooti Bailley Appy fizz
The SWASTIK GROUP renders services in the form of Consultancy. Supply of Equipments and Spares, Erection and Commissioning and operation in the following fields:
Aditya Sarawgi
DIRECTOR
Mr.Aditya Sarawgi is an MBA from the University of Wales Institute, Cardiff (UK). After completing his masters in Feb 2009, he joined the family business and is responsible for various group activities. E-Mail:-
Swastik Aqua Ltd.
Swastik Coke Pvt. Ltd.
STI Marketing Pvt. Ltd.
Swastik Global Pvt. Ltd.
Swastik Softech Pvt. Ltd.
Swastik Overseas Pvt. Ltd.
Swastik Forgings Pvt. Ltd.
Swastik Fruits Products Ltd.
Swastik Trades & Industries
Powermech (India) Pvt. Ltd.
High-Point Rendel (India) Ltd.
PRODUCT
The Group is engaged in the manufacturing Mango Drink, Appy Fizz (Carbonated) & Bailey Packaged Drinking Water as a Franchisee of World Renowned Parle Agro Private Limited. Two state of the Art Units have been commissioned at Tatisilwai Industrial Area, Phase-II, Ranchi for catering the requirement of Bihar and Jharkhand in particular with a net-work of over 250 Distributors and 25000 marketing points.
Aditya Sarawgi
DIRECTOR
Mr.Aditya Sarawgi is an MBA from the University of Wales Institute, Cardiff (UK). After completing his masters in Feb 2009, he joined the family business and is responsible for various group activities. E-Mail:-
PRODUCTS
1. FROOTI:
It is the flagship brand of swastik fruits product Pvt Ltd (franchise of Parle agro). It was introduced in 1985 and it was the first Fruit Drink to be introduced in India.
2. BAILLEY AQUA:
It is a mineral water and was launched in the year 1993. It is one of the first
brands to get an ISI certification Bailley conforms to stringent BIS Norms. It
undergoes 51 quality control tests includes 32 chemical tests, 9 microbiological
tests and 10 physical tests and meets international standards laid down by WHO,
USFDA, PFA.
Parle Bailley Aqua is unique because it has the same consistent taste across India. This is because of the unique purifying processing system, which removes all minerals and salts and puts back only exact premeasured quantities of salts and minerals necessary for the human body. Bailley Aqua is purified with chemical free natural U.V. Treatment.
.3. APPY FIZZ:
An apple drink from swastik franchise of Parle , it’s available in a sleek, international pack. The brand has been positioned as the champagne of apple drinks due to its unique richness of taste. Unlike ordinary apple drinks, Apply spells style and exclusiveness which makes it a party favorite in the upper crust of
Aditya Sarawgi
DIRECTOR
Mr.Aditya Sarawgi is an MBA from the University of Wales Institute, Cardiff (UK). After completing his masters in Feb 2009, he joined the family business and is responsible for various group activities. E-Mail:-
the society. Apply is made from freshly picked ripe apples sourced from the rich natural environs of Himachal Pradesh. The clear and crisp Apply Nectar is a premium product available in a 200 ml easy to pour pull-tab opening pack.
WHY FROOTI:
Soft drink market can be divided into two categories:-Carbonated soft drinkNon-carbonated soft drink (NCSD). Frooti is the market leader in the NCSD category with around 60% market share. The NCSD market is growing but there is intense competition among the various segments in this market. The market share of Frooti in the NCSD category is on the decline because of the Fruit Juice Segment, which is increasing at the rate of 20% per annum along with the sluggish growth of the Fruit drink segment. To counter this onslaught, Frooti has introduced PET bottle packing in 200 ml, 500 ml and 1000 ml and Tetra-pack packing in 65 ml quantity. Therefore, we have taken up this project to suggest recommendations to swastik to increase the share of Frooti in NCSD category and to study the market response of the new packaging of Frooti.
ABOUT FROOTI:
Mango - India’s national and most premium fruit was a virtually untapped segment until the year 1985, which saw the launch of Frooti Mango in a trendy convenient tetra-pack. Frooti Mango is swastik franchise of Parle Argo’s flagship brand and India’s leading fruit drink with an 85% market share. Now, Frooti also comes in PET bottle packing.Frooti is like an Indian ambassador and is a hot favorite not only in India but all across the world. Frooti is the first tetrapak fruit juice in India. Launched in 1984, Frooti still holds a dominant position in the Rs300 crore tetrapak fruit juice (TFJ) market.Frooti over these years have carved out a niche for itself in the market. Frooti instantly caught the fancy of Indian consumer with its tetrapak and some smart campaigns. Initially the drink was positioned as a kids drink. The product was perceived as a healthy fruit drink by
Aditya Sarawgi
DIRECTOR
Mr.Aditya Sarawgi is an MBA from the University of Wales Institute, Cardiff (UK). After completing his masters in Feb 2009, he joined the family business and is responsible for various group activities. E-Mail:-
the mothers . So within a short span of time ,the brand was an alternative to the “unhealthy” colas. The tetrapak had other benefits also . Fruit juice is a perishable product and tetrapak have extended the shelf life of Frooti because tetrapaks have 2 layers of paper and a plastic coating that ensured tamper proof and enhanced shelf life. Lured by the success of Frooti, there were a lot of new launches in the TFJ market. Players like Godrej with Jumpin, kissan etc tried their luck in this market but failed to dislodge Frooti. Frooti was positioned as a mango drink that is “Fresh-n-juicy” For over 7 years, the company promoted the product using that famous baseline. The product have tried to create excitement in the market through a series of new variants and packing. But in late nine tees the brand was facing stagnated sales. The company tried to excite the market with an orange and pineapple variant but both the variant bombed. The came the experiment with packaging . The YO! Frooti variant came with a slim paper can aimed at the college going youth. Worried by the stagnating sales, parle tried to reposition the brand to appeal to youth aged between16-21. The positioning changed to be more fun based. The package also changed. The old green color of the bottle changed to more bright mango color with lot of graphics added to it. One of the most famous marketing campaigns India have witnessed took place during the repositioning. The campaign is the famous “ Digen Verma “ campaign. This campaign was considered as one of the most successful teaser campaigns in India. The campaign lasted for 15 days started in February 2001. The campaign was about a faceless person Digen Verma. There were posters and outdoors all across the markets that had messages like “ Who is Digen verma” “ Digen Verma was here” etc. This created lot of excitement in the market and “Digen Verma “became the most talked about faceless name at that time. The campaign was executed by Everest communication. But the campaign was not followed up and the hype was not translated to long term brand building. Frooti is basically a nectar based drink so it is not 100% fruit juice, it also have some preservatives added to increase the shelf life. Although Frooti did not face much competition in the category it created, competition came from a slightly different category, 100% fruit juices. Parle saw the emergence of the “ 100% fruit drink market and launched “Njoy” brand but it did not clicked. Parle could have extended Frooti to this market also .The brand Real from Dabur is the main player in this category. Real effectively positioned itself as a premium healthy drink for adults. Frooti was not able to appeal to adults and was considered as a mango drink while Real is not restricted to any flavour. Frooti also changed its positioning statement from ‘ Fresh-N-juicy” to “ Juice Up your life” which have not clicked with the customers. Although Frooti enjoys a commanding (75%) market share , Frooti is facing stagnation. May be some serious steps should be taken to increase the usage of the product. The launch of PET bottle Frooti is a step in this direction. Recently Frooti also launched a “Green
mango” variant just to create some hype in the market. Frooti may have to reposition itself again to appeal to cola drinkers.
INDUSTRY PROFILE
NON-CARBONATED SOFT DRINK INDUSTRY
IN INDIA
AN OVERVIEW : The non-carbonated SOFT DRINK (NCSD) sector can be classified as Fruit drinks, Nectar and Juices. The classification is based on the percentage of the fruit pulp content in the beverage. Fruit drink has to have minimum fruit pulp content of 10%, while Nectar needs to have a minimum fruit pulp content of 25%. The total size of the branded non-carbonated beverages in the organized segment is estimated at Rs.500 crores. The Fruit drink segment is estimated at Rs.250-300 crores, while the Juice market (Branded & Packaged) is estimated at Rs 150 crores. Nectar is a small category of around Rs 35-50 crores. In the fruit drink category, Parle’s Frooti, Godrej’s Jumpin and Coca-Cola’s Maaza and Pepsi’s Slice are the major brands. In the Nectar segment, the key national players are - Dabur, Godrej Xs and Parle’s Appy fizz . The two key national level players in the juice segment are Tropicana and Real. Real is the market leader with 55-60% market share. Tropicana has an estimated share of 30-35%. Several local / regional brands also exist, besides a huge unorganized sector. The Juice category is the fastest growing segment at present, estimated to be growing by 20-25% p.a. The fruit drinks category has also been witnessing growth of around 5% p.a.The main reason for this growth in the NCSD Category is the change of the consumer preference from the carbonated to the non-carbonated soft drink sector mainly due to increasing Health Awareness among consumers and the Pesticide issue relating to Coke and Pepsi. In the Fruit Drink segment, Frooti is the clear market leader with around 85% market share but in the NCSD category as a whole, its share has been declining because of the growth in Fruit Juice segment.So, with the growth of
the NCSD category, Frooti has to compete with all the segments in this category to take a larger share of this growth.
These are the category of the non carbonate soft drink
Non-Carbonated Soft
Drink
Fruit Juice
Category
Fruit Drink
Category
Fruit Nectar
Category
Major Players
Real
Tropicana
Major Players
Frooti
Jumpin
Slice
Maaza
Mango sip
Major Players
Appy fizz
COMPETITORS:
These are the main competitor of the frooti :-
1. Maaza
2. Slice
3. Real
4. Mango sip
5. Real
6. Tropicana
We are not taking into account the nectar segment as it constitutes a
small part of the NCSD category and also, the growth is very sluggish
in this segment. Mango sip mazza and slice is main competitor
What is marketing? Marketing is the process by which companies create customer interest in
products or services. It generates the strategy that underlies sales techniques,
business communication, and business development. It is an integrated process
through which companies build strong customer relationships and create value for
their customers and for themselves.[1]
Marketing is used to identify the customer, to keep the customer, and to satisfy
the customer. With the customer as the focus of its activities, it can be concluded
that marketing management is one of the major components of business
management. Marketing evolved to meet the stasis in developing new markets
caused by mature markets and overcapacities in the last 2-3 centuries. The
adoption of marketing strategies requires businesses to shift their focus from
production to the perceived needs and wants of their customers as the means of
staying profitable.
What is marketing strategy?
Marketing strategy is a method of focusing an organization's energies and
resources on a course of action which can lead to increased sales and dominance of
a targeted market niche. A marketing strategy combines product development,
promotion, distribution, pricing, relationship management and other elements;
identifies the firm's marketing goals, and explains how they will be achieved,
ideally within a stated timeframe. Marketing strategy determines the choice of
target market segments, positioning, marketing mix, and allocation of resources. It
is most effective when it is an integral component of overall firm strategy, defining
how the organization will successfully engage customers, prospects, and
competitors in the market arena. Corporate strategies, corporate missions, and
corporate goals. As the customer constitutes the source of a company's revenue,
marketing strategy is closely linked with sales.
Marketing strategy of frooti in jharkhand
SKU strategy
The company is looking at larger pack formats and will focus on a well planned
SKU (stock-keeping unit) strategy to addresses ‘on-the-go’ as well as ‘in-home’
consumption for Frooti. Among recent introductions have been a one-litre,Pet and
1 pack to cater mainly to in-home consumers and families who prefer staggered
consumption. A 500 ml PET bottle priced Rs 25 is another new launch, targeted at
on-the-go consumers. Prices of the brand in various SKUs range from Rs 3 for a 65
ml pack to Rs 60 for the 1500 ml pack.
Frooti in tetrapak
Parle Agro’s Frooti is the leading brand in the tetrapak fruit drink market. The
brand witnessed declining sales and started losing its appeal due to increased
competition. To revive the sagging sales and appeal of the brand, Parle Agro
decided to relaunch the brand with new positioning and packaging. The case let
discusses about Parle Agro’s design and implementation of the brand prelaunch
exercise for Frooti. It provides a detailed description of the advertising strategy
followed by the company to promote the brand that involved a teaser advertising
campaign revolving around a faceless character 'Digen Verma'.
Frooti is 100 % juice
Parle Agro has entered the 100-per cent pure juice category with mango Juice. The
brand frooti was unveiled by Nadia Chauhan, director, Parle Agro, in Mumbai.
Targeted at the fast growing segment of consumers who are moving towards 100
percent juice, .Creative land Asia has designed the design and packaging of the
juice brand.
Frooti has deliberately kept the packaging like mango color, with a view towards
standing out on retail shelves. The launch campaign (frooti) of the product will
involve print advertising, point of purchase promotions and internet. ''Most juice
brands do not communicate clearly whether they are nectar, 85-per cent juice or
100-per cent pure juice, who oversees sales, marketing and product development at
Parle Agro. "Consumers are confused with what they are buying. Only 100 per
cent juice is pure juice .frooti Juice is 100 per cent juice."
Brands like Frooti and Appy fizz Classic that have established themselves as
market leaders in their respective categories, Parle Agro's decision to enter the 100-
per cent juice category is in line with the its strategy to have presence across all
beverage categories
Direct selling to retailer
Frooti is very famous product in Jharkhand among child, young. and women .
According to my survey I found that company is direct selling product to retailer .
tatisilwai is the manufacturing center of frooti .it is developing under swastik fruits
product pvt ltd (swastik is the franchise of parle agros ) kokar is the main
distributing center of the company from where company is direct selling all
product to retailer .employee of the swastik is selling product in every area in the
Ranchi. Every sales man of the company go to retailer and they are selling product
with their own experience and company have many sales officer who is very
sincere and honest. All the employee of the company is giving hundred effort for
customer satisfaction.
Company have around two hundred employees for Jharkhand area .there
Two main distributing center of company in Jharkhand one is in Ranchi and
another one is in Jamshedpur (Tata). And one dippo in Patna (Bihar)
Product has huge demand in Bihar and Jharkhand. Supply chain management is
excellent in Bihar` and Jharkhand
Company has many distributer and super distributer in bihar and Jharkhand
MARKETING MIX
What is the marketing mix?
The marketing mix is probably the most famous marketing term. Its elements are
the basic, tactical components of a marketing plan. Also known as the Four P's, the
marketing mix elements are price, place, product, and promotion.
The concept is simple. Think about another common mix - a cake mix. All cakes
contain eggs, milk, flour, and sugar. However, you can alter the final cake by
altering the amounts of mix elements contained in it. So for a sweet cake add more
sugar!
graph
Marketing decisions generally fall into the following four controllable
categories:-
1. Product
2. Price
3. Place (distribution)
4. Promotion
The term “marketing mix” became popularized after Neil H. Borden
published his 1964 article, The Concept of the Marketing Mix. Borden
began using the term in his teaching in the late 1940’s after James
Culliton had described the marketing manager as a “mixer of
ingredients”. The ingredients in Borden’s marketing mix included
product planning, pricing, branding, distribution channels, personal
selling, advertising, promotions, packaging, display, servicing,
physical handling, and fact finding and analysis.E. Jerome McCarthy
later grouped these ingredients into the four categories that today are
known as the 4 P’s of marketing, Product, price, place and promotion.
These four P’s are the parameters that the marketing manager can
control, subject to the internal and external constraints of the
marketing environment. The goal is to make decisions that center the
four P’s on the customers in the target market in order to create
perceived value and generate a positive response.
PRODUCT DECISIONS :
The term “product” refers to tangible, physical products as well as
services. Here are some examples of the product decisions to be made:
1. Brand name
2. Functionality
3. Styling
4. Quality
5. Safety
PRODUCT:
A product is anything that can be offered to a market to satisfy a want or
need.
India’s first real fruit drink in a Tetra Pak is available in - Frooti Mango,
Green Mango. Frooti Mango is from premium Indian Mangoes. Frooti has
also been introduced in PET bottle packing. Mango Frooti contains vitamin
A which is essential for eye sight, growth and healthy skin. Frooti is a
delicious and refreshing ready to serve fruit beverage.
Frooti comes in Fruit drink segment of NCSD category (NON-
CARBONATED SOFT DRINK).
Frooti is available in following quantities:-
65 ml (only Tetra pack packaging)
200 ml (only pet Bottle)
500 ml (only PET Bottle)
1000 ml (only PET Bottle)
1500 ml (pet bottle)
Hence, we can see that Frooti has got a very large quantity basket .
PRICE DECISIONS :
Some examples of pricing decisions to be made include:
1. Pricing strategy (skim, penetration, etc)
2. Suggested retail price
3. Volume discounts and wholesale pricing
4. Cash and early payment discounts
5. Seasonal pricing
6. Bundling
7. Price flexibility
8. Price discrimination
PRICE:
TETRA PACK PACKAGING
QUANTITY PRICE (Rs.)
65 ml 3.00
PET BOTTLE PACKAGING
QUANTITY PRICE (Rs.)
200 ml 12.00
500 ml 25.00
1000 ml 45.00
1500 ml 60.00
In order to maintain its position as a market leader, Frooti is
offering its product in different quantities and prices depending upon
the consumer requirements, preferences and income-levels.
As we can see from the above table, Frooti’s new 65 ml packaging is
priced at Rs 3.00 only, targeting the lower income-group and it has
also been introduced in PET bottle packaging as it is more cost-
effective as compared to Tetra-pack packaging to become more
competitive in the market.
DISTRIBUTION (PLACE) DECISIONS:
Distribution is about getting the products to the customer.
Some examples of distribution decisions include:
1. Distribution channels
2. Market coverage (inclusive, selective, or exclusive distribution)
3. Specific channel members
4. Inventory management
5. Warehousing
6. Distribution centers
7. Order processing
8. Transportation
9. Reverse logistics
PLACE:
Frooti is the highest distributed brand in Fruit drink segment with an
85% market share in India. Frooti reaches more than 10 lakh retail
outlets through more than 1500 distributors and wholesalers directly
and indirectly. This is borne out by Parle Agro winning the Beverage
Industry award for the Best Managed Supply Chain 2002 and the
Highest Retail Availability in the year 2002. Frooti’s excellent
distribution system has already been proved in our market survey and
analysis where 90% of the respondents agreed that Frooti is readily
available to them. In the Jharkhand,bihar and orisa frooti is running
under the swastik fruits product Pvt Ltd. Ranchi, Jamsedpur(Tata) and
Patna is the main distribution center of frooti in Jharkhand and Bihar
PROMOTION DECISIONS:
In the context of the marketing mix, promotion represents the
various aspects of marketing communication, that is, the
Communication of information about the product with the goal of
generating a positive customer response.
Promotion decisions include:
1. Promotional strategy (push, pull, etc)
2. Advertising
3. Personal selling & sales force
4. Sales promotions
5. Public relations & publicity
6. Marketing communications budget
PROMOTION:
In a strategic move, swastika product Pvt Ltd is revamping its
marketing plans in a bid to promote its flagship brand ‘Frooti’ in the
overcrowded category. In fact, the company has taken a different
marketing route by launching a host of new retailing and packaging
initiatives to pump up volumes. five years ago, Parle Agro introduced
a mysterious character called ‘Digen Verma’ and created a hype
around this person through an aggressive outdoor campaign which was
quiet a success. Parle Agro had introduced two characters called Froo
and Ti on every 200 ml pack of Frooti as part of its retailing initiative.
These two characters are being displayed on the packs of the drink.
And through tongue twisters, puzzles and various interactive games,
the characters are entertaining the children as well as increasing their
knowledge about famous personalities and current affairs. These two
characters are very different in nature. While Froo is an affable girl
who is good at studies, Ti is a naughty boy who keeps running after
Froo to get his home-work done. With this move, the company expects
to share various activities of its target audience--kids. Recently, Frooti
was introduced in a new tetra pack packaging in 65 ml quantity which
is priced at Rs 3.00 each
CHAPTER- III
METHODOLOGY:
A) DATA COLLECTION
1) Primary Source
Retailers
Consumers
2) Secondary Source
Website
Magazines and Newspapers
B) RESEARCH INSTRUMENTS
Questionnaire
Personal interview
C) SAMPLING PLAN
1) Sampling Unit: Who is to be surveyed?
Urban Consumers
2) Sample Size: How many people to be surveyed?
100 Units (of all age groups)
3) Sampling Procedure:We have taken sample from following areas:
1) Ranchi main Road
2) Kantaoli
3) Harmu
4) Doranda
5) Kanke Road
6) Ratu Road
7) Bariyatu & Morahabadi
8) Namkom
9) Hatia
10) Itki
11) Tatisilwai
12) Argora
CARBONATED DRINK
FRUIT DRINK
80 %
12 %
CHAPTER- IV
MARKET SURVEY AND ANALYSIS
PREFERENCE OF CONSUMERS
INFERENCES
1. The consumers are becoming more health conscious.
2. The market share of NCSD is growing.
NO
YES
CAN’T SAY
57%
18%25%
3. Great opportunity for Frooti to capture this growing market .
IS FROOTI A HEALTH DRINK?
Consumer will perceive any drink as a health drink if he / she think
drinking it will benefit his / her health.
This diagram shows the percentage of respondents who perceive Frooti
as a Health Drink.
INFERENCES
1. Frooti is not perceived by the majority as a health drink.
2. Health drink consumers should be targeted.
CONSUMER AWARENESS REGARDING VARIOUS FLAVOURS
OF FROOTI.
MANGO70%
GREEN MANGO FLAVOURS 23%
OTHERS 7%
MANGO
INFERENCES:
1. This diagram shows the percentage of respondents who are aware
about the various flavors of Frooti.
2. Less promotion of green mango flavor.
YES 77%
NO 23%
3. Less acceptance of green mango flavor among consumers .
SHOULD FROOTI COME IN OTHER FLAVOURS?
INFERENCES:
1. This diagram shows the percentage of respondents who think that
Frooti should come in other flavours.
WHICH FLAVOURS?
ORANGE APINE APPLE
GRAPE OTHER 0%
5%
10%
15%
20%
25%
30%
35%
40%
40%
32%
20%
8%
OTHER GRAPE APINE APPLE ORANGE
INFERENCES:
1. In other flavours, consumers have gone for strawberry and
lemon.
2. Consumers want Frooti in other flavours.
3. Huge market in flavours other than Mango.
4. Other than Mango, Orange and Pineapple are the most preferred
flavours.
IS FROOTI A CHILD DRINK?
NO21%
YES68%
CANT SAY11%
SALE
INFERENCES:
1. Frooti is more of a family drink rather than a child drink.
2. Frooti has market in all age-groups.
IS FROOTI READILY AVAILABLE?
YES90%
NO10%
Chart Title
INFERENCES:
1. This diagram shows the percentage of respondents who think
Frooti is readily available.
2. Good distribution channel of Frooti.
3. Good demand for Frooti in the market.
CHOICE OF CONSUMER
MAAZA 25%
SLICE 20%
FROOTI 40%
MANGO SIP10% 5%
Chart Title
INFERENCES:
1. Emergence of Real as Frooti’s main competitor.
2. Growing threat to Frooti’s leadership in NCSD category.
3. Increasing consumer preference towards Fruit juice segment.
EFFECT OF PROMOTIONAL SCHEMES ON CONSUMER:
INFERENCES:
1. This diagram shows the percentage of respondents whose buying
behavior is influenced by promotional schemes.
2. Consumers are attracted towards promotional schemes.
3. Buying decision of consumer can be changed through consumer
schemes.
YES NO MAY BE 0%
5%
10%
15%
20%
25%
30%
35%
40%
Chart Title
YESNOMAY BE
VALUE FOR MONEY
Value for money means the real value of the product in relation to the
price of the product.
` FROOTI MAAZA SLICE MANGO SIP0
5
10
15
20
25
30
35
40
45
50
FROOTIMAAZASLICEMANGO SIPColumn1
INFERENCES:
This diagram shows the satisfaction the consumer derives by consuming the
product in terms of money in a 1-5 point scale given on the y-axis of the
diagram.
(1 indicating BEST and 4 the WORST).
CONSUMER AWARENESS REGARDING
PACKAGING OF FROOT
PET
YES 80%
NO5%
CANT SAY 15%
YES
YES 83%
NO4%
CANT SAY 13%
TETRA PACK
INFERENCE
1. Consumer is well aware of packaging of Frooti
CONSUMER AWARENESS REGARDING AVAILABILITY OF VARIOUS QUANTITIES OF FROOTI .
YES 70%
NO25%
CANT SAY 5%
200 ML
YES 50%NO
39%
CANT SAY 11%
65 ML
YES 50%NO
43%
CANT SAY 7%
500 ML
YES 49%NO
42%
CANT SAY 9%
1000 ML
INFERENCE:
1. As Frooti in 65 ml quantity was recently introduced and half of
the respondents know about it, this shows good promotion and
good initial demand for new packaging.
CONSUMER PREFERENCE FOR VARIOUS QUANTITIES OF
FROOTI
65ml 200 ml 500ml 1000ml0
5
10
15
20
25
30
35
25
35
30
10
65ml 200ml
500ml 1000ml
INFERENCES
1. There is good demand for all the quantities.
2. Great demand for 65&200 ml.
3. Introduction of 65 ml was a good move .
CONSUMER RESPONSE FOR THE MOST CONVENIENT
FORM OF PACKAGING
TETRA-PACING 40%
PET - BOTTLE 53%
GLOSS BOTTLE 7%
TETRA-PACING
INFERENCE
1) As Frooti was the first to introduce PET bottle packing in
NCSD category, this shows it was the right move from
convenience point of view.
TESTING OF HYPOTHESIS
Hypothesis 1:
1. Null hypothesis(H0)= Fruit Drink is the preferred attribute which
customers look for in Frooti
2. Alternate hypothesis (H1) = Fruit Drink is not the preferred factor for
which customers looks in Frooti
3. Level of significance= Let 5% be the level of significance in testing the hypothesis Since the test s two tailed test , the value of z = ±1.96
4. Test formula:-
p‾ - pZ=√ {p (1-p)/n}
Where
p= sample proportion (calculated from graph) = 80%
p¯=population proportion (known) = 81%
n= sample size=100
.81-.8Z=√ {.8(1-.8)/100}
=.25
Calculated value Z=.25 falls within acceptance level in +1.96, so hypothesis is accepted.
Conclusion: Customers see the Frooti as fruit drinks
Hypothesis 2:
1. Null Hypothesis (H0)=frooti is a child drink
2. Alternate Hypothesis(H1)= frooti is not a child drink
3. Level of significance= Let 5% be the level of significance in testing the hypothesis Since the test s two tailed test , the value of z = ±1.96
4. Test formula:-
p‾ - pZ=√ {p (1-p)/n}Where
p= sample proportion = 44%
p¯=population proportion = 34%
n= sample size=100
Now
.34 – .44Z=√ {.44 (1-.44)/100}
= -2.01
5. Calculated value is not fall in acceptance level ,so the hypothesis is rejected
Conclusion: The Frooti is not only child drinks, it can be used by adults
Hypothesis 3:
1. Null Hypothesis (H0)= Frooti is readily available
2. Alternate Hypothesis(H1)= Frooti is not readily available
3. Level of significance= Let 5% be the level of significance in testing the hypothesis Since the test s two tailed test , the value of z = ±1.96
4. Test formula:-
p‾ - pZ=√ {p (1-p)/n}Where
p= sample proportion = 90%
p¯=population proportion = 91%
n= sample size=100
Now
.91 – .9Z=√ {.9 (1-.9)/100}
= .33
5. Calculated value is fall in acceptance level, so hypothesis is accepted
Conclusion:
The Frooti is readily available in market
CHAPTER- V
SWOT ANALYSIS:
The overall evaluation of a one’s strengths, weaknesses, opportunities
and threats is called SWOT analysis.
STRENGTHS OF FROOTI :
1. Market leader in NCSD category-60% market share.
2. Innovative - First packaged Mango drink in Indian market, first to
introduce Tetra pack, PET bottle packaging in NCSD category.
3. Quick market responder - Introduced 65 ml packaging to cater
different segments.
4. Frooti has got a very large quantity basket - available in various
quantities like 65 ml, 200 ml, 500 ml and 1 Liter.
5. Efficient distribution network-readily available.
6. Frooti is a health drink - Contains Vitamin A.
7. Frooti has got a strong Brand Equity.
WEAKNESSES OF FROOTI
1. Frooti is not perceived as a health drink. As per our survey majority of our
respondent didn’t consider Frooti has a health drink.
2. Frooti has limited variety of flavour - only mango and green mango.
3. “Frooti means mango”, syndrome in the mind of consumers.
4. Margin given to retailers and distributors is less as compared to its
competitors.
5. The main target audience of Frooti is kids.
6. Frooti has no brand ambassador.
7. No brand expansion - Brand equity of Frooti is not utilized properly.
OPPORTUNITIES FOR FROOTI
1. Huge untapped unorganized sector in NCSD category.
2. Huge untapped market in other flavours - Orange,
Pineapples, Grape.
3. Growing market share of NCSD category.
4. Demographically, in the coming years around 55% of the
population will consist of below 35 years in age, which
should be major target market for Frooti.
5. Increasing health awareness among consumers - As per our
survey 88% of the respondents preferred fruit drink to
carbonated drink.
THREATS FOR FROOTI
1. Decreasing share in NCSD category - Fruit juice segment
consisting of Real and Tropicana is increasing at the rate of 20-
25% per annum as compared to sluggish growth in other segment.
2. Presence of huge unorganized market.
3. High consumer preference for flavours other than mango and
green mango.
4. Competition with global giants - Coke and Pepsi.
RECOMMENDATIONS FOR FROOTI ON THE
BASIS OF MARKETING MIX
PRODUCT
1. Frooti in Others Flavors :
1. As per our survey, around80% of the respondents want Frooti in
flavors other than mango and green mango like Orange,
Pineapple and Grape.
2. Now, the most striking fact is that Frooti is available in Orange,
like Mumbai and Pune.
3. These flavors are not available in Ranchi and Patna region.
4. Our main competitor MAAZA is available in many flavors like
mango, orange, guava, grape, apple, pineapple and mix fruit etc.
5. So, to compete with MAAZA and other competitors, the present
variants of Frooti in orange, pineapple and strawberry flavor
should be made available all over India.
6. Frooti should also be made available in grape flavor as there is a
great demand for this flavor, especially in the less than 20 age-
group segment.
2. The Appy fizz case
1. Appy fizz is a new product launched by the swastik (franchise of
Parle agro) in Bihar and Jharkhand. It is a nectar drink which
comes in apple flavor.
2. Now the question is that swastik (franchise of Parle agro) has not
used the brand equity of Frooti in branding Appy fizz.
The reasons for this can be: -
1. Appy fizz is a nectar drink and is in a different segment from
Frooti which is in the fruit drink segment.
2. Parle agro is promoting Appy fizz as a lookalike for champagne
drink and is targeting the upper income class consumers.
PLACE :
1. Retail chain of NCSD in India
2. To capture the huge unorganized sector, Frooti should be
promoted as a retailing chain outlet in India on the lines of Main
road which is in the retailing of coffee.
3. This outlet should contain all the variants of Frooti in different
flavours and quantities and it should also be served in glasses.
4. Also, this outlet can be used to provide fresh fruit juices in
various flavours at a very reasonable price. This move will help
frooti to capture a major chunk of the huge unorganized sector
which is more than Rs 500 crore.
5. But, this is a highly risky move and requires lot of capital so,
swastik should first experiment by opening a few outlets.
PROMOTION:
1. The nutrient content of Frooti should be highlighted on the package so that
the consumer can become more aware and perceive Frooti as a Health drink.
2. The quality standard of Frooti should be approved by a reputed authority or
organization (like ISO series) and this be promoted.
3. Taking the cost consideration into account, swastik can go for more
distributor and retailer margins, as by getting more margins the retailers and
the distributors will promote Frooti more efficiently. It should also provide
more consumer schemes.
4. Swastik can also promote Frooti by providing various offering like
Refrigerators.
BRAND AMBASSDOR FOR THE FROOTI:
1. Frooti is needed to be promoted as a health drink and should
target not only the kids but also the other members of the
family.
2. For this Frooti should project its brand ambassador who will
help consumers perceive it as a health drink.
3. The Brand ambassador should be someone who symbolizes
good health and along with him / her a cartoon character
(someone very popular among kids) should also be introduced
so that Frooti does not loses its current taret audience-kids.
SUGGESTION:
1. Frooti can go for Salman Khan as a brand ambassador as he is
very popular in India and symbolizes good health. (Punch line
can be something like “After gym, have a Frooti”) Along with
him, Frooti should also go for a famous cartoon.
2. Character like Scooby Doo or Pokémon to target the kids and
both of them should feature together in the advertisement.
CONCLUSION:
We can conclude the following :
1. By taking some initiatives, Frooti can compete with the fruit
juice segment comprising of Real and Tropicana, and can
maintain its position as a market leader in the NCSD category.
2. The consumers response to the new packaging (PET botte and 65
ml Tetra pack) of Frooti is positive as shown in the survey .
LIMITATIONS:
1. The corporate office of Parle Agro is situated in Mumbai and so
we could not gather information from there but swastik is a
franchise of frooti.so I collect all information from Ranchi
corporate office of swastika
2. We could not find the reason why Frooti was not introduced in
other flavours like orange, pineapple etc on all India basis (We
sent an E-Mail to the company but didn’t get any reply).
BIBLIOGRAPHY:
1. “Philip Kotler”, Marketing Management, Millennium edition.
2. www.swastik.org.in
3. www.parleagro.com
4. www.netmba.com
5. www.indiainfoline.com
6. www.financialexpress.com
7. Business line.
8. Brand Equity, Economic Times
QUESTIONNAIRE
Dear Sir / Madam:
This questionnaire is part of a market study being conducted by me. The aim of the
study is to analyze the strategies adopted by frooti in the various stages of its
lifecycle.
Any information provided would be used only for academic purpose and kept
confidential.
1. Name:
2. Age:
3. Occupation:
4. Contact No:
5. Do you drink Soft Drinks? Yes / No
6. If yes, which Soft Drinks?
Carbonated Drinks / Fruit Drinks
7. Which fruit Drinks do you like most?
MAZZA
SLICE
FROOTI
REAL
TROPICANA
.
8. Should Frooti come in other flavor? Yes/ No
9. If yes, which flavor?
Orange
Alpine apple
Grape
Other
10.Is Frooti a health drinks? Yes/ No
11.Is Frooti a child drink? Yes /No
12.Is Frooti readily available ? yes/No
13.Do you think advertising influence you to drink Frooti ? Yes/No
14.Which drink give you more value ?
Frooti
Mazza
Slice
Real
Tropicana
Jumping
15.Do you know Frooti is available in many packages? Yes/ No
Pet bottle
Tetra pack
16.Which packages do you prefer most?
Pet bottle
Tetra pack
17.Do you know Frooti is available in many quantities?
65 ml
200 ml
500 ml
1000 ml
1500 ml
20. Which quantity do you prefer most?
65 ml
200 ml
500 ml
1000 ml
1500 ml
21. What is your opinion of the brand?
Excellent
Good
Fair
Poor
23. Would you visit another store X, if you do not find it at your store?
24. Any recommendation, suggestion , you want to give for Frooti for betterment
of product …….
Signature PLACE:-
DATE: