Fresh Punch

Nishant Subba

Group Members -

Praveen Patel Manoj Tivari

CONTENTS

About Company Objective Aim Location Financials Mission Vision Situational Analysis SWOTT Analysis PEST Analyses Target Market Competitive Analysis

COMPANY INFORMATION

FP Agro is a company which will produce fruit juice.

FP Agro is going to make unique position in terms of corporate presence and also a platform for other Fruit Juice companies, with its advanced technology and the instrumentation required to manufacture a Juice that has many different flavors, for utmost customer satisfaction.
FP Agro will be an environment-friendly company dedicated on sustainable development and corporate social responsibility, as a service to society and preservation of nature.

Selection of the product

The product selected is Juice and our brand name is Fresh Punch Juice

Product

Fresh Punch is a 100 percent fruit juice which will be produced and marketed by the FP Agro Industries Ltd. Fresh Punch will produce juice in the following varieties :

Sea buckthorn Apricot Passion Fruit Kiwi Pomegranate Apple Orange Pineapple Grapes Guava Mango Mixed Fruit Pear

LOCATION

Kullu, Himachal Pradesh raw material

OBJECTIVES

Carry out business in the field of horticulture and food processing in Himachal Pradesh Target of capturing at least 10 per cent of the market share within a year and 20 per cent by 2010-end

FINANCIAL

Will be incorporated with an initial investment of Rs.15 cr (150 million)

MISSION
To be a leading producer of fruit juices based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to our partners and stakeholders.

VISION
To be capable to deliver the range and quality of Juice which the customer demands, which can only be fulfilled by the modern technology which will have the scale and worldwide presence to do so competitively

INDUSTRIAL ANALYSIS

Branded fruit beverage market in India is estimated to be worth Rs. 1,200 crore (nectars, drinks and juices combined) The fruit drink market

Juice accounts Nectar Fruit drinks

30 % 10 % 60 %

Cont..

The juice and juice drink category is among the fastest growing segments
Fruit drinks as a category is growing at 18-20 per cent, carbonated soft drinks are growing at 6-8 per cent. Its the fastest growing liquid beverage category.

More than 90 % of sales happen through the unorganized route juice centers, street corner shops and so on.

Adequate availability of raw materials High consumer retention rate Price, a competitive advantage Natural product

Seasonal availability of fruits Brand acknowledgement Limited financial resources Late entry into the market

Participation with a growing industry. Competitive advantage over carbonated soft drinks Wellness awareness amongst consumers Commonwealth Delhi 2010 Success of incredible India campaign

Cut throat competition Unstable government policies Global warming - Scarcity of raw material

TRENDS

Health and Lifestyle Product Eco friendly packaging Promoting anti Botulism E-commerce

POLITICAL

Tax Laws Stability of Government

Law of hiring and promotion

ECONOMIC

Increasing GDP Burgeoning middle class Higher Disposable Incomes, hence more consumer buying power Easy availability of loans from banks

SOCIOCULTURAL

Changing consumer habits & lifestyles - The Indian consumer of today is clearly seeking healthier alternatives Consumer buying behavior

TECHNOLOGICAL

Advancement of newer technology Government providing thrust on R&D

TARGET MARKET

Primary and Secondary Markets Market Segmentation

o o o o

Geographic variables Demographic variables Psychographic variables Behavioral variables

Target Markets

Recreational Fitness Health Lifestyle Sports

Contd..
Primary Market

Kids Fond of Fruit Juice (fond of mango, strawberry)

Teens More experimental

Youth Experimental and more buying power

Working People
Housewives

Elderly people

Contd..

Secondary Market Travel Industry Airlines, Railways and Local Transport Systems Recreational Movie Theatres, Malls, Amusement Parks, school, collages, hotels, restaurants, bars etc.

Market Segmentation

Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs
Variables Used for Segmentation Geographic variables Demographic variables Psychographic variables Behavioral variables

1. 2. 3.

4.

Geographic variables

FP Agro has no set geographic target area. By leveraging the benefits of liberalization and integration of the markets of the world, FP will seek to serve both domestic and international customers. Metropolitan Cities, major cities of the states, and towns.
Density of Area: Urban, Semi-urban, Rural.

Climate: Tropical

Demographic variables

Age all age group gender Both Male and Female family size - doesnt matter Education - doesnt matter Income middle & hi end consumer occupation student, working and retired people religion doesnt matter nationality/race doesnt matter language - doesnt matter

Psychographic variables

Personality Lifestyle Value Attitude

No Yes Yes Yes

Behavioral variables

benefit sought product usage rate brand loyalty profitability income status

Contd..

Users perceive fruit juice as a healthy drink.

Users drink fruit juice as a refreshing alternative to carbonated drinks.

Users willingly spend on products related to health and lifestyle.

Users enjoy fruit juice not only as a means of healthy life, but as an intrinsically enjoyable activity in itself.

COMPETITIVE ANALYSIS

Identification Of Competitors
Competitor Analysis Market share Comparison Strengths & Weaknesses of Competitor

Identification of Competitors

CavinKare Pvt Ltd (Maa Fruits Pvt Ltd. ) Coca Cola India (Minute Maid Pulpy Orange / Maaza ) PepsiCo (Tropicana ) Parle Agro (Frooti / Appy/ N-joi ) Dabur (Real ) Godrej Beverages (Xs brand / Sofit ) Ladakh Foods (Leh Berry) Mother Dairy (Safal)

Freshgold

Market Share of Competitors

Chart Title
Dabur Real Parle Frooti Godrej Jumpin Nestle's Milo 2% 2% 4% 4% 13% 15% 25% Pepsi Tropicana Coca Cola's Maaza Pro Soya,s Soya Milk Others

35%

Comparison within the major competitors

Tropicana is a product of vast PEPSI family Pepsi's Tropicana brand fruit juice has outpaced the growth of the packaged fruit juices market in India. The company sources orange juice concentrates from Brazil. They come in Tetrapaks of one litre and PET bottles of 500 ml and one litre. Pepsi also markets Gatorade an energy drink for the sports personnel which is a sugar-free Diet Pepsi. Pepsi, in association with HLL have launched Lipton iced tea

Dabur's flagship brand Real fruit juice is a market leader in the packaged fruit juice category. Real with a market share of 35 % offers to its consumers the largest range of 9 juices that comprise orange, mango, pineapple, mixed fruit, grape, guava, tomato, litchi and cranberry. Real Active orange carrot juice, India's first packaged fruit + vegetable juice. Real offers traditional 'cooling' recipes in a ready-to-drink format ie Aam panna, pomegranate (anar) and watermelon . Spread over 11 acres and geared to process 150 tonnes of fruit per day, it has the capacity to produce 192 tonnes of pulp/concentrate.

Comparison within the major competitors

Frooti from Parle Agro is the largest distributed fruit drink with 85 % market share in India. It reaches more than 10 lakh retail outlets in up to class C towns The company's another revenue earning brand includes Bisleri water. It has a market share of 40 %.

Maaza was acquired by Coca Cola India. Over the years, Maaza has become synonymous with mango. The drink became a hit with successful advertisement campaigns like "Taaza mango, maaza mango,' and 'Botal mein aam, maaza hain naam. It5 is available in 200 ml , 250 ml , 125 ml Tetrapak and 200 ml Tetrapak.

Competitor Analysis
Tiger Competitor Counter attack every strategy Aggressive Few in number example: Coca-Cola, PepsiCo Stochastic Competitor Unpredictable Weak in nature; can become strong example: Mother Dairy

Strategic Competitor Reacts to a select strategy Mediocre example: Parle Agro

Laid Back Competitor Confident about their product Defensive Generally monopolies Brand Loyal Customers

Strengths & Weakness of competitors

Name CavinKare Pvt Ltd Strengths Acquired Maa Fruits Pvt Ltd Distribution network Weakness Entering in a new segment

Coca Cola India

PepsiCo Parle Agro

Global leader in beverages Growing Fast

Global Brand in beverage Market share

New Entry
Less Product Line Less Product Line

Dabur
Godrej Beverages

Market leader
Innovation

Less cost effective

New entry

Ladakh Foods
Mother dairy

Nutrients

Taste
New Entry

Cost Effective

Marketing Objective & Strategies

Product Place Pricing Promotion

Product
Type Fruit Juice

Features
PLC

Fresh Punch is a 100 percent fruit juice which will be produced and marketed by the FP Agro Industries Ltd.
Our product lie in introduction period

Identification

brand name Fresh Punch

Product Life Cycle

Our product lie in introduction period Low sales High costs per customer Negative profits Innovator customers Few competitors Objective: to create awareness and trial Offer a basic product Price at cost-plus Selective distribution Awareness dealers and early adopters Induce trial via heavy sales promotion

Place

Distribution Channel Product location availability Modes of transportation

Distribution Channel
Kullu
Bangalore Delhi Chennai Mumbai
Within region

Kullu

Delhi

Kullu

Chennai

Kullu

Kullu
Mumbai

Kullu Bangalore

Product Location Availability

FP Agro has no set geographic target area. By leveraging the benefits of liberalization and integration of the markets of the world, FP will seek to serve both domestic and international customers. Metropolitan Cities, small cities, towns.
Density of Area: Urban, Semi-urban, Rural.

Modes of transportation

From road transportation

Pricing Policy

Apply the concept of providing quality product at optimum price

Provide Lucrative discounts, deals and schemes Adopt sales oriented objective Have one price policy to maintain a goodwill among customers.

Pricing Strategy

So, as a new comer our pricing strategy is to introduce our products in the market at lower prices so as to create the huge demand in the market and to compete with other competitors. As we come up in the demand, we will increase our prices and will provide more efficient and affordable juices

Pricing Strategic Matrix

Penetration Pricing Our product will be lie on penetration strategy with high quality & low price For introducing new product

Price low to capture market share Expect to make profit in volume

Break even point

Demand

Desire refers to people's willingness to own a good. Demand is the amount of a good that consumers are willing and able to buy at a given price.

Factors Influencing our juice Demand The amount of a good demanded depends on:

the price of the juice the income of consumers the demand for alternative juice which could be used (substitutes) the demand for juice used at the same time (complements) whether people like the taste of juice (consumer taste).

Supply

Supply is the amount of a good producers are willing and able to sell at a given price.

Factors Influencing Supply of our juice The total sells of juice depend on the price of the good; the cost of making the good; the supply of alternative goods the producer could make with the same resources (competitive supply); the supply of goods actually produced at the same time (joint supply); unexpected events that affect supply.

Factors
The factors which will contribute to the success for our juice demands in market: High consumer retention rate Price, a competitive advantage Natural product Great distribution network Well Health product

Launching and Promotion

Promotional Tactics

Provide free samples in the market for the brand awareness

Advertising

The following shows the advertising in the print media to our target audience by using the message showing a glass full
of juice Drink this much every day

Long-Term Strategy

Change beverage choices in vending machines at school and collages Assess the financial impact on school and collage profits Identify approaches to promote healthful beverage choices and maintain profits for schools and collages Targeting 3,500 in smallest school and collages all over India 20, 000 in largest school and collages all over India

Contd.

Change advertising on beverage vending machines Change beverage choices to water, sports drinks, and 100% fruit juices Collect and submit monthly financial data from school and collages Provide a Rs. 3,000 incentive per school in the project

Factors to Consider - Vending Machines

Location of current vending machines

Power sources Marketing strategies

Size of Cans and or Bottles Cans, Bottles, or both Pricing strategies

Lower for healthier choices Price all beverages the same Price based on ounces

Tie Up Promotion Strategy

We will tie up with PVR cinemas to increase our branding. Will be putting up vending machines in every pvr cinemas like Bengalooru, Gujarat, Hyderabad, Maharashtra, MP, NCR, Punjab, UP

`in-film advertising'

Will be giving our brand (juice) to be use in movie. Example : In movie Yaadein Pass-Pass, Hero cycle, Coca cola `in-film advertising' - a brand using the medium of cinema to promote its message. A number of marketers are now using movies to project the core values of their brands. In-film advertising, in its most effective form, is about a brand being a part of the cinema's content. Take for instance, the Hollywood flick `What Women Want'. This Mel Gibson starrer has a Nike commercial as part of the script. It gels with the script so well that you don't realized you're watching a commercial camouflaged in the screenplay

Thank You