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. 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. satisfaction. FP Agro will be an environment-friendly company dedicated on sustainable environmentdevelopment and corporate social responsibility, as a service to society and preservation of nature. 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 20102010-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. 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 Rs. (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 18soft drinks are growing at 6-8 per cent. cent. Its the fastest growing liquid beverage category. category. More than 90 % of sales happen through the unorganized route juice centers, street corner shops and so on. 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 area. benefits of liberalization and integration of the markets of the world, FP will seek to serve both domestic and international customers. customers. Metropolitan Cities, major cities of the states, and towns. Density of Area: Urban, Semi-urban, Rural. SemiClimate: 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 ) NDabur (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. India. The company sources orange juice concentrates from Brazil. Brazil. They come in Tetrapaks of one litre and PET bottles of 500 ml and one litre. litre. Pepsi also markets Gatorade an energy drink for the sports personnel which is a sugarsugar-free Diet Pepsi. 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. 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. cranberry. Real Active orange carrot juice, India's first packaged fruit + vegetable juice. juice. Real offers traditional 'cooling' recipes in a ready-toready-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. pulp/concentrate.

Comparison within the major competitors

Frooti from Parle Agro is the largest distributed fruit drink with 85 % market share in India. 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. water. It has a market share of 40 %. Maaza was acquired by Coca Cola India. India. Over the years, Maaza has become synonymous with mango. mango. The drink became a hit with successful advertisement campaigns like "Taaza mango, maaza mango,' and 'Botal mein aam, maaza hain naam. 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 example: Dabur

STRENGTHS & WEAKNESS OF COMPETITORS

Name CavinKare Pvt Ltd Coca Cola India PepsiCo Parle Agro Dabur Godrej Beverages Ladakh Foods Mother dairy Strengths Acquired Maa Fruits Pvt Ltd Distribution network Global leader in beverages Growing Fast Global Brand in beverage Market share Market leader Innovation Nutrients Weakness Entering in a new segment New Entry Less Product Line Less Product Line Less cost effective New entry Taste New Entry

Cost Effective

MARKETING OBJECTIVE & STRATEGIES

Product Place Pricing Promotion

PRODUCT
Type Features PLC Identification Fruit Juice 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 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. Semi-

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