Project Guidelines

1. Select the brand. The selected Brand is Tropicana. 2. Study the industry. Drinking juice is not a part of our culture. We drink water with our meals but in the West one starts the day with breakfast and a glass of juice. Juice is to a great extent considered as a luxury and not a necessity in our society. T hings are changing slowly mainly in the urban and semi urban areas, where the population is getting more and more health conscious and marketing people are making people think that juice provides important nutrient values and are trying to make juice a part of people s daily diet. The Juice Market is growing annually at 20%. The fruit-based beverages market in India is divided into three segments - fruit drinks, nectar and 100% juice . Parle Agro's Frooti, CocaCola's Maaza and PepsiCo's Slice are the three major brands in the f ruit drinks space, which is the largest chunk of the fruit-based beverages category. In the nectar and 100% juice space, Dabur's Real brand controls half the market, while Pepsi's Tropicana has over 30% share. And all these four companies have been investi ng aggressively on new product launches and innovation to cash in on the increasing demand for healthy drinks. There was a news of Hindustan Unilever entering the market under its kissan brand a couple of months back but nothing has happened so far. Carbonated drinks still remain the most popular non -alcoholic ready-to-drink beverages in India, but the two cola multinationals and other established players have been introducing newer variants and brands to expand fruit-based and other healthy beverages. However, fruit juice market has not been fully tapped because of poor infrastructure, poor storage facility, and highly unorganized market, chiefly constituted by road side vendors. Consumers still prefer to buy juice from road side vendors even if they are unhygienic. The major growth drivers in fruit juice market are, increase in health consciousness among consumers, increase in disposable incomes, and more sophisticated cocktail culture. Major Major Players and their brands: Dabur foods with its brand Real. Pepsi with its brand Tropicana. Coca Cola India with its brand Maaza.

Leading Manufacturers of Fruit Beverages in India: Company Parle Agro Brand Frooti Flavours Mango, Guava, Pineapple, Strawberry & Orange Appy Apple Orange, Nature Sweet, Apple, Grape Pineapple, Tomato Mixed fruit Slice Mango, Litchi, Orange & Guava Grape, Guava, Orange, Pineapple Tomato Mixed Fruit, Litchi, Mango, Real Active Orange, Apple Orange, Apple Re Orange, Apple Xs Orange, Apple Mango

PepsiCo Ltd.

Tropicana

Dabur

Real

Godrej Foods

Jumpin

Coca Cola

Maaza

Brief Profile of the company

Tropicana Products is an American based company, and was founded in 1947 by Anthony T. Rossi in Bradenton, Florida, U.S.A. Since 1998, it has been owned by PepsiCo, Inc. Tropicana's headquarters are in Chicago, Illinois. Anthony T. Rossi (1900 1993) was born in Italy on the island of Sicily. He had the equivalent of a high school education, and emigrated to the United States when he was 21 y ears old. He drove a taxicab, was a grocer in New York, farmed in Virginia and then moved to Florida in 1940 where he farmed and was a restaurateur. His first involvement with the Florida citrus industry was fresh fruit gift boxes sold by Macy's and Gimbel 's department stores in New York City, New York. In 1947, Rossi settled in Palmetto, Florida and began packing fruit gift boxes and jars of sectioned fruit for salads under the name Manatee River Packing Company. As the fruit segment business grew, the company moved to a larger location in east Bradenton, Florida and changed its name to Fruit Industries. The ingredients for the fresh fruit salads on the menu of New York s famed Waldorf-Astoria Hotel were supplied by Fruit Industries. At the

east Bradenton location, Rossi began producing frozen concentrate orange juice as a natural extension of the fruit section business.

Tropicana Products, Inc. is the leading producer of chilled orange juice in the world. It also claims the top spot in the overall U.S. orange juice market, with a share of 33 percent, compared to archrival The Minute Maid Company's 24 percent (Ironically, Minute Maid is owned by PepsiCo, Inc.'s archrival The Coca -Cola Company). In the $2.45 billion U.S. chilled juice sector, Tropicana holds a commanding 39.8 percent share. The company was a pioneer in the not-from-concentrate, chilled orange juice sector, and accounts for more than 70 percent of U.S. not-from-concentrate sales. In North America, the company's main brands are Tropicana Pure Premium, Tropicana Season's Best, Dole juices, and Tropicana Twister. Internationally, Tropicana distributes its products in 23 countries, with the primary brands including Tropicana Pure Premium, Dole juices, Fruvita, Hitchcock, Looza, and Copella.

Up early, Tropicana Products pours out profits from America's favorite breakfast beverage, orange juice. A subsidiary of PepsiCo, Tropicana makes its juice at a facility in Bradenton, Florida, and sells them in the US and Canada through its PepsiCo Americas Bever ages unit, which is headquartered in Chicago. Tropicana offers many variations of its flagship juices, including reduced-sugar, reduced-calorie, and calcium-fortified versions. Its Tropicana Smoothies are a blend of juice and yogurt. Tropicana Pure, which is sold in the produce section of food stores, is the company's premium juice line. Tropicana also makes Pepsi's Naked Juice line and juice for the Dole company under license.

In April 1986 Beatrice was taken private through a $6.2 billion, highly levera ged buyout led by Kohlberg Kravis Roberts & Co. (KKR). Over the next two years, Beatrice was stripped of much of its assets to pay down debt. Tropicana was part of this asset sale; it was sold to The Seagram Company Ltd., the Canadian alcoholic beverage ma ker, for $1.2 billion in March 1988. By that time, Tropicana was a company with annual sales of $740 million and pretax profits of $100 million. Under Seagram, Tropicana continued to expand within the United States, becoming a truly national brand for the first time. Also in an aggressive expansion mode, Minute Maid aimed squarely at Tropicana with the 1988 introduction of its own not -from-concentrate chilled juice brand, Minute Maid Premium Choice. Tropicana subsequently sued Coca -Cola over its advertising and packaging slogan for Premium Choice, which included the phrase "straight from the orange." Coca-Cola dropped the slogan rather than fight the suit. Despite the

lawsuit, by 1990 Minute Maid had 11.7 percent of the not -from-concentrate, ready-to-serve orange juice market. That year, however, Tropicana edged past Minute Maid in the overall U.S. orange juice market, claiming 22.3 percent to its rival's 22.2 percent. The orange juice wars soon claimed their first victim when the top two orange juice brands proved to be too formidable competitors for even the likes of P&G, which discontinued the Citrus Hill brand in September 1992. Tropicana and Minute Maid were soon battling anew to gain share in the aftermath of Citrus Hill's withdrawal. Tropicana gained th e initial upper hand, and by 1993 had extended its lead in the overall orange juice market to a somewhat comfortable 30.1 percent to 25.9 percent. Even while it was ascending to the top spot, Tropicana continued to be beset by management turnover. Robert L. Soran, who had headed the company at the time of its acquisition by Seagram and continued as president afterward, was forced to resign in September 1991 following his failure to report to Seagram $20 million in cost overruns on construction projects in F lorida, New Jersey, and California, according to Alix M. Freedman of the Wall Street Journal. In February 1992 William Pietersen, president of the Seagram Beverage Group, was named president of Tropicana as well. He resigned in January 1993 for "family considerations," with Myron A. Roeder taking over. From the late 1980s through the mid -1990s, Tropicana expanded aggressively, both outside of its core orange juice products and outside of the United States. In 1988 the company introduced the Twister line of bottled and frozen juice blends; the "flavors Mother Nature never intended" were eventually to include apple -berry-pear, orange-peach, cranberryraspberry-strawberry, and orange-strawberry-guava. Three years later, a low-calorie Twister Light line made its debut. By 1991 annual sales of the Twister lines reached $170 million. That year Tropicana Pure Premium was launched in Canada, the United Kingdom, Ireland, and France; Germany, Argentina, and Panama were added to Pure Premium's market area in 1994. Also in 1991 a joint venture between Tropicana and Kirin Brewery Company, Limited of Japan began importing and marketing orange juice in that country. In 1993 Tropicana introduced Grovestand orange juice, a ready -to-serve product that was touted to have the consistency and taste of fresh-squeezed juice. The company acquired Hitchcock, the number one premium fruit juice brand in Germany, from Deinhard & Company in 1994. By that time, about 12 percent of Tropicana's overall sales (which were about $1.3 billion in fiscal 1994) were generated from overseas markets, compared to just five percent in 1992. The company gained further overseas power through the May 1995 $276 million purchase of the global juice business of Dole Food Company, which had a strong presence in western Europe. Brands gained thereby were Dole juices in North America and Dole, Fruvita, Looza, and Juice Bowl juices and nectars in Europe. Tropicana then became known as Tropicana Dole Beverages, with Ellen Marram heading up the unit and Gary M. Rodki n serving as president of Tropicana Dole Beverages North America.

As the 1990s continued, Tropicana expanded further internationally, entering several more Latin American countries as well as Hong Kong and China. The company also scored a promotional coup in 1996 when the stadium for the Tampa Bay Devil Rays major league baseball team was named Tropicana Field. In 1997, in addition to celebrating its 50th anniversary, Tropicana began construction of a $17 million research and development center in Bradenton; opened its Midwest Distribution Center in Cincinnati, Ohio; launched Tropicana Pure Premium juice products into Portugal; introduced Tropicana Fruitwise Smoothies and Tropicana Fruitwise Healthy Fruit Shakes; and acquired Copella Fruit Juices Ltd., the leading producer and marketer of chilled apple juice in the United Kingdom. Sold to PepsiCo in 1998 While Tropicana was expanding rapidly into a company with 1997 worldwide sales of $1.93 billion, Seagram was increasing its involvement in the entertainment industry. In May 1998 Seagram announced it would acquire PolyGram N.V., the world's largest music company, for $10.4 billion. To help fund the purchase, Seagram said it would divest Tropicana. Originally, Seagram planned to sell the unit to the public thro ugh an initial public offering. But with the IPO market not as attractive as it was earlier in the decade, Seagram struck a deal with PepsiCo, Inc., consummated in August 1998, whereby the juice business was sold to the beverage giant for $3.3 billion in c ash. Tropicana became a division of PepsiCo, once again adopting the name Tropicana Products, Inc. Marram elected to pursue opportunities elsewhere, so Rodkin was named president and CEO of the company. One sign that Tropicana was poised for a bright futur e was an August 1998 Tropicana press release announcing that for the first time in U.S. history, sales of not -from-concentrate chilled orange juice had surpassed those of from -concentrate juice. In November 1998 the company announced that it had agreed to license the Tropicana brand name to Greene River Marketing, Inc. of Vero Beach, Florida, for use on ruby red fresh grapefruit. This marked the first time that the Tropicana name would appear in the produce section of supermarkets.

The STP of the brand? Segmentation Targeting Health conscious people Positioning

The brand with respect to 4 p s?

The nearest competitors? Dabur real Kissan Juice with soya milk Coco cola Pulpy orange

Brand you vis- a -vis the competition?

Draw inferences and make recommendations? Apply the relevant model for analysis?