Product Performance and Buyers Behavior towards Daburs Real Burrst Fizz

GROUP-7
ARIJIT GUHA ABHISHEK KUMAR BHARAT.K KIRAN SENAPATI GUPTA SHAIVYA GUPTA

9/26/2011

Executive Summary

This report deals with the Dabur s Real Burrst Fizz entry into the carbonated fruit-based drinks market which is already a well-populated and dense market with a market of about T 200 Cr. at present with products like Parle Argos Appy Fizz, Pepsi's Nimbooz and Coca-Cola's Minute Maid Nimbu Fresh having a strong presence. After Burrst Fizz, Dabur doesn't want to get into any more new segment and want to focus on the existing products, so following a market follower strategy, the Dabur which is enjoying the major market share of 54% share in the T750 Cr. packaged fruit juice market has brought into the market their Dabur s Real Burrst Fizz. Being the pioneers in bringing the concept of packaged fruit juices in India and also being the first to introduce 100% fruit juices and fruit-vegetable juices, after the successful launch of India's first fiber-enriched beverage Real Activ Fiber+ last summer(2011), Dabur is now enhancing their fruit beverage offering with the launch of Burrst Fizz, a refreshing fruit drink. With this, Dabur aims to further expand the fruit-based beverages category and give their consumers more choices and a healthier thirst quencher. The product was already launched in South India; the company is planning to launch it in North India also where already a soft-launch was made to estimate the viability of a product or to fine tune a product before implementing it for a larger market on total effort.

Introduction
Dabur India Limited has marked its presence with significant achievements and today commands a market leadership status. Our story of success is based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to our partners and stakeholders. The results of our policies and initiatives speak for themselves. Ral has been the preferred choice of consumers when it comes to packaged fruit juices, which is what makes India's No. 1 Fruit Juice brand. A validation of this success is that Ral has been awarded Indias Most Trusted Brand status for four years in a row. Today, Ral has a range of 14 exciting variants - from the exotic Indian Mango, Mausambi, Guava & Litchi to international favorites like Pomegranate, Tomato, Cranberry, Peach, Blackcurrant & Grape and the basic Orange, Pineapple, Apple & Mixed Fruit. This large range helps cater different needs and occasions and has helped Ral maintain its dominant market share.

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A research conducted by Blackstone Market Facts even pointed out that Ral was preferred by over 50% of the respondents. Whats more, Ral was liked for being the better tasting juice - a category where likeability is primarily driven by taste. Made from best quality fruits, Ral does not have artificial flavors and preservatives, and offer your kids not just great taste, but also FRUIT POWER - the power of fruits the power to stay ahead. Loaded with the power of Vitamin C, Ral fruit juices have all the necessary nutrients that keep you active all day long The nutritional contents of Ral Fruit Juices & Nectars are endorsed by PFNDAI -- Protein Foods & Nutrition development Association of India. Protein Foods Association has been in existence for about forty years. It has gained credibility in health and food professionals such as physicians, nutritionists, dieticians, food scientists and technologists, etc. as an unbiased body, almost of the stature of an NGO. Even government officials have high regards for the association. So when the association lends its logo to any product, the product is accepted by them to deliver the nutritional contents as claimed by the manufacturer

Accolades for Ral

India's No.1Fruit Juice brand Voted as a Super brand Voted by consumers as the most trusted fruit juice brand for four years in a row Ral awarded the Readers Digest Trusted Brand Gold Award 2009 in the food and beverages category

Title: Product Performance and Buyers Behavior towards Dabur s Real Burst Fizz

Problem statement:
FMCG Company Dabur has introduced its Burrst Fizz brand to tap the potential in Juice Segment. Dabur has launched the Dabur Burst fizz drink in South India and has planned to introduce it in North India by next summer in 2012. Availability, likability and visibility of the drink are the factors, which are indirectly responsible for its performance. Burst fizz product performance in South India is most important factor to know the demand of the product and consumer choice towards fizz based fruit drink

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Sample Size:
The target segment is health conscious people including mothers, elders and young women. But Burst fizz drink is mainly focusing on health conscious youth because of carbonated fruit based fizz. The sample size is 20 including 3 families(6 people), 12 youth and 2 old people. Research Design: The research is going to be an exploratory research where the consumers will be interviewed. Projective techniques like personal interview technique was utilized to get a better understanding of Indian customers towards the fizz based Burrst drink of Dabur. To understand the consumer psyche, Observation method is also applied for research.

Expected outcome:
The study is focused on understanding what the consumers expect from fruit based juices, what perception they have towards Real Burst fizz, and what are the areas that Dabur has to work to meet the demands of Indian consumer and to increase the likeability of Burst fizz.

SAMPLE SELECTION:
Segmentation: On the basis of demographic factors like age and disposable income, segmentation was done, the age segment under consideration is 20-30 years and their average expenditure for the month is above T10,000. Targeting: The target segment is health conscious people including mothers, elders and young women. But Burst fizz drink is mainly focusing on health conscious youth of age 20 to 30 years because of carbonated fruit based fizz.

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METHODOLOGY:
One to One Interview We conducted a one to one interview to study the purchase behavior of consumers when it comes to buy Real Burst fizz fruit drink.

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TOPICS DISCUSSED:
The parameters on which they were asked for their response are as follows: Consumer Behavior Interview questionnaire: Name: Age : Occupation: 1. Do they prefer packaged juices?

2. Which one do they prefer? Tropicana Real Real Active (Dabur) B+ Natural Minute Maid Juices Burrst Fizz Active Fiber+ (Dabur Real) Onjus Appy Fizz Maaza Slice Frooti Kissan Juices Del monte can Juices

3. What is the reason for their preference? Taste, Healthy, No added sugar, No preservatives, Other Reason:

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4. What are factors on the basis on which they prefer buying the fruit juices? o o o o o o o Family Children preference Packaging Company Advertisement Schemes Other

5. Do they prefer fruit juices with zz? Yes ---------------> Which one do you prefer, Burrst Fizz / Appy No -----------> Reason? Fizz? Reason?

6. Have they ever heard of Dabur Burrst Fizz? Yes No

7. Have they ever tasted this product (Burrst Fizz) ? Yes No

8. What are they take on Dabur products?

9. What are their expectations from a product like Fruit juice?

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10. Quantity of product you prefer to purchase? 1 liter Pack 200 ml 500 ml 11. What type of packaging you prefer? Tetra Pack 1 liter 200 ml PET Bottle

OBSERVATIONS:
Attitude towards Juices: For refreshment Substitute of fresh juice Juicing is an excellent way to absorb the maximum nutritional content of fruits and vegetables It gives a quick burst of energy. Fruit juices are excessive in sugars, and even though the sugars are natural, people who have been advised to restrict sugar consumption should use them with moderation. Diabetes people preference is no added sugar juices Consumer opinion towards Real active Fiber plus, it inhibits the absorption of nutrients and Fiber is nearly universally accepted that a diet high in fiber results in reduced risk of colon cancer, lower cholesterol, and other healthful benefits. Women generally prefer because of nutrients ingredients

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To know the consumption behavior of children, 200 ml tetra is generally buy by women for their children Packaging of active fiber plus was attracting most of the customers. To hang out, get together with friends

Direct Competitors:
The fruit-based carbonated drink segment has a market size of Rs 200 crore at present with products like Parle Agro's Appy Price: This juice market is not price sensitive. Consumer prefers to consume healthy drink. Perception of consumer says that high price add more value and more nutrients to that brand.

Competitor prices and Real Burst prices: Product (Tetra Pack or PET) Saint Tetra pack Mainute maid Tetra pack Tropicana Tetra pack Onjus Tetra pack Real Active fiber plus Tetra pack Real Active Tetra pack Real Burrst Tetra pack Real burst fizz Tetra pack Real Burst PET bottle 65 12 28 1 Liter 200 ml 500 ml Rate 95 85 85 100 90 Quantity 1 Liter 1 Liter 1 Liter 1 lieter 1 liter

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Not buying just juice, Not much evaluation, just purchase No price sensitivity Average price one is willing to pay for a liter of tetra pack T 60-100 The amount differs for a student and a Professional

Product: The new sparkling beverage range is available in 2 flavors: fizz and Lemon fizz. It is made from real fruit juice, the new Burrst Fizz range will be available in two SKUs 500 ml PET bottles (priced at T 28) and 200 ml tetra pack of T12. Place: Burrst Fizz was not available in the super market like More, food world and reliance Mart. Distribution was only in Hyper market. No proper distribution. No visibility encouraged unawareness among consumer Only one rack was occupied by Burrst Fizz.

Promotion:
Direct marketing: Sample test marketing is done by sales manager for Burrst Fizz. Sales person was distributing the free samples in hyper market. It has been observed that the sales person didnt have the sufficient knowledge about the product and she was not proper trained to sell the product. No proper visibility No POP and POS promotions No advertisements

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REAL BURST
Ral has always been at the forefront of innovation. The concept of packaged fruit juices in India and were also the first to introduce 100% fruit juices and fruit-vegetable juices. Packaged fruit juice maker Dabur India Ltd has announced its entry into the carbonated drinks market with the launch of Burrst Fizz, a range of carbonated fruit-based drinks. The new sparkling beverage range is available in two variants Lemon Fizz & Apple Fizz.

Outcome from the focus group discussion

A focus group discussion was conducted at Alliance University. A sample size of 16 students was considered to represent the youth target segment aimed by Dabur. It was divided into two groups of eight members each and each group was moderated by two representatives. A series of questions were asked/imposed upon the candidates about their likes and dislikes for fruit juices and carbonated burst drinks. The two groups were divided on the basis of certain parameters like health consciousness, standard of living. All the 16 candidates were citizens of north India and subconsciously followed the purchase patterns of North India. It was observed that nine of the candidates were health conscious and preferred having healthy fruit juices. However they wanted something new without any compromises on health aspects. When they were introduced to Dabur Burst fizz, three out of eight candidates liked the taste of the drink (Dabur burst fizz- lemon and apple flavor) and would like to purchase it. The other five candidates did not like lemon flavor with fizz element in the drink. Group B were not health conscious but yet were willing to try new variety of products. Observations showed that six out of eight did not like fizz fruit flavor drinks. Moreover the packaging did not appeal to the candidates.

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Interesting Findings: Direct Promotion at hyper Market

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Competitors Behavior:

RECOMMENDATIONS:

The recommendations from the study can be put into what are the perceptions towards the same and what are the expectations of Indian consumers in terms of the 4 Ps of market strategy from a company like Dabur with their products

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PRODUCT: The major findings that came out from the focus group research conducted by us was that even though people like to have a juices, the product fizz is secondary There was a section of people who emphasized more on the product as a fizz. For them fizz/soda is a refreshing drink, but again, their decision for fizz is not with the fruit juices but the alternative options like cool drinks take their position The flavor is has a good significance here. The consumers do not go for just carbonated drinks, but other beverages which are non-fizz items like the packaged fruit juices five a good indirect competition. Dabur has got a great brand image that comes with it and its track record of being a healthy and tasty beverage and food provider with its Real products.

PRICE: The price the consumer is paying for is good value for money and the products are priced competitively but in order to grab the market in a new segment with a new product, the prices can be lowered which prompts the buyer to go for the products and test them Making the price a round figure like T10 for the 200ml pack instead of T12 would impact the consumers on the psychological pricing aspect.

PLACE: Place plays a very important role in the food and beverage industry, packaged juice companies are competing for the growth of the company, for which place plays a very important role.

Theme-based outlets, Dabur can come up with this innovative idea of promoting their brand based on a theme, this would help them in differentiating them from the other competitors and position them as an exclusive cool joint. This differentiation can also make the consumer walk extra miles to come to that joint. Should be available in all the competitive retail stores. Should be merchandised in the eye level, so that it might catch the attention of the unaware customers. Should contact some of the business organizations and put their vending. Should improve the distribution networks which make the product easily available to the customers. The dealers can be provided with refrigerators so that this could be a very good promotional medium and will be an opportunity to have the drink chilled.

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PROMOTION
Should provide some incentives for the largest seller of the product and should take initiatives to educate the on floor employees of the retail stores. Promotions in the business places like Infosys campus, some premium malls and in famous market places. Promote Dubur , rather than BURST FIZZ which might make the customer more interested about the product due to companies reputation. Should promote online in the social network sites. Promotion should be more based on the health issues. Promotion about the competitive pricing (i.e. comparing price with other competitors)

Conclusion:
Dabur Real Burst Fizz has been established in Southern India but yet it has not been able to establish the brand in the market prominently. Dabur faces intense competition from two strong competitors. Many of the customers are yet unaware of the carbonated burst fizz drink that Dabur is providing. Moreover, before venturing to Northern India, it should create a strong hold upon the southern Indian market. Observations have shown that the citizens of the Northern India did not like element of fizz in their drinks and preferred the traditional fruit juices. We recommend Dabur not to venture into the northern market / zone just yet as the company could face major losses.

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