Industry Analysis

Fruit juice industry coupled with beverage industry in one of the largest industrial sectors in India, growing at a robust rate of 27% Change in urban lifestyle Natural Drinks preferred to Carbonated Soft Drinks Lack of packaged sugarcane juice due to lack of technology. But recent advances in technology has made it possible as seen in Middle East

India is second largest producer of sugarcane in the world after Brazil

Freshly extracted sugarcane juice is very popular in India which is served alone or with ginger/ lime extracts

Major problems - Contamination of juice with micro-organisms and unhygienic ways of preparation

Why HUL?
Path breaking Product Entry into fruit juice segment through their brand Kissan Extensive Distribution network

Brand HUL

Juice
Juice is always 100% fruit juice Prepared by mechanically squeezing or macerating fresh fruit Rest are nectars or still drinks

PRODUCT Idea
Product Idea

IDEA GENERATION
Initial Idea : To introduce packaged sugarcane juice in regular, elaichi, kesar, lemon, pudina, mint, pepper and ginger flavors since hygienic sugarcane juice is not available Conducted one on one interview to understand the need for the product

IDEA SCREENING
Weighted index method - Revealed that our product idea can be placed in the good idea level. Consumer surveys Greater demand for regular, lemon and pudina flavours

PRODUCT Idea
PRODUCT IDEA RATING
Product Success Requirements
Unique Offering (Taste, Hygiene etc)

Relative weight
0.4

Product score
0.8

Product Rating
0.32

Distribution Channel
Expected performance to cost ratio Competition Total

0.1
0.3

0.75
0.7

0.07
0.21

0.2

0.5

0.10 0.70

Concept Statement
A healthy, hygienic, natural juice for instant rehydration and rejuvenation for all ages

Evaluation
Clarity- Clear concept of supplying sugarcane juice in tetra packs Believability- With the advent of new technology even sugarcane juice can now be packaged just like other fruit juices

Need Gap Analysis Difficult to extract juice at home Concerned about hygiene of local vendors

Perceived value High value, fresh, natural

Purchase intention High need gap score People ready to pay extra for hygienic juice

Perceived usage Who: Everyone When: throughout the year, especially during summers How Often: Almost every second day

Blue Ocean Strategy

Untapped market
Product with a potential target market
High demand Can be consumed round the year No big brand serving it, yet

Health meets taste, in a branded way, for the first time

Huge competition amongst local vendors, but hygiene factor not met with

Marketing Mix

Product: 250 ml, 500ml paper pack and 1 ltr pack (100% pure written on the pack) Different flavors ginger, lemon, mint, masala, plain, elaichi Different color schemes for different variants
Place: Hybrid channel Road side stands in peak season Selling directly to hotels and restaurants Ensure availability to keep up the brand promise of quality service

Price: Pricing objective: Product quality leadership 250ml (15), 500 ml (28), 1 ltr (50) depending on flavor chosen and local taxes of different states.
Promotion: Constantly in line with USP of quality, hygiene and health. Advertisement in radio and television would also convey the brand promise by highlighting the usp. Sponsorship of TV and radio telecast to aid in brand building and creating top of mind recall. Use of trade promotion to an extent

Packaging

In chilled products, mainly juices, micro-organisms are the limiting factor for shelf-life

This is determined by heat treatment, the hygienic status of the packaging system and the storage temperature of the packaged products (2-10C)
Juice being cold-stored is not usually packaged aseptically
sugarcane juice will require less of preservatives

250 ml tetra pack, 1L family pack Packaging material used : As shown in picture Preservatives : Sodium metabisulfite (500 ppm) Shelf-life : 6 months (refrigerated)

Segmentation
Geographic
Rural, Semi-urban and Urban Areas Regions with hot and arid climates

Demographic
All individuals aged 5 and above Individuals across middle and high income groups Working and nonworking individuals

Psychographic
Health conscious consumers Quality conscious consumers Consumers who have diverse tastes and seek variety

Target Market

Urban Areas Students at every level People on the move ( Working people and Passengers) Health and Hygiene conscious individuals

Launch Plan
Test Market :
Consumption patterns Distribution network Target market Climatic conditions

Distribution centers:
6 distribution depots already existing within Delhi for other products

Sales outlets:
Provision stores, snack bars and restaurants, college canteens, Metro stations

Launch Plan
Aspects to be monitored:
Sales Figures & profitability Preferred SKUs Margin adequacy for retailers Actual v/s estimated need gap Feasibility study Perceived product differentiation

Quality maintenance
Retailers needs (refrigeration)

Initial launch cities:

Delhi, Mumbai, Kolkata, Bangalore, Jaipur, Lucknow