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13 Fruitjuiceproject 110803134639 Phpapp01
13 Fruitjuiceproject 110803134639 Phpapp01
13 Fruitjuiceproject 110803134639 Phpapp01
Company
Shreeji Enterprises Pvt. Ltd will be entering the food processing industry with its
first launch i.e. a Kiwi fruit juice.
Three of the four investors have full operational responsibilities. SD and SY are
the co-founders and have both entrepreneurial and industrial experience. PB
brings operational management and financial skills to the operation.
Shreeji Enterprises Pvt. Ltd has a Strategic Alliance with the New Zealand based
company Zespri International Limited to supply the kiwi fruits to India. Pursuant to
our company policy stating "Quality First, Credit Prominent", we process our
KiwiJoos with strict production standard, quality control and sophisticated
processing technology, we at all time provide our consumers the natural and
healthy Kiwifruit juice.
Our Start up costs, listed below, has been financed to date by the investment
from its owners. Following are the parameters:
Particulars
Amount
Land & site development;[x[ acres @ Rs. [y] lakh per acres
Building and civil works
xxx
xxx
xxx
xxx
Preoperative expenses
xxx
Preliminary expenses
xxx
xxx
Contingencies @ 10%
xxx
Capital Expenditure
xxx
xxx
xxxx
Project cost
-2-
Market Analysis
Market Analysis Summary:
One can sense an evolution that the industry has seen with development in the
tetra- pack market, there also has been a natural progression from drinks to
nectars to juices and while traditionally fruit drinks were aimed at children, the
new brands like Onjus, Real, and Life have focused on young adults and
professionals.
Although fruit drinks focus strongly on out of home consumption, the juices and
nectars have been concentrating on takeaways or in-home consumption with
more choice coming in, the tetra- pack market is likely to witness further
segmentation.
Packaged fruit juices are getting recognized as social drinks now, with dominant
consumption being observed in the company of family and friends. People have
started to perceive fruit juices as anytime beverages, with consumption being
spread more or less evenly between the mid mornings, afternoons and evenings.
And generation now is as much inclined to sipping fruit juices as colas, with
teenagers driving the maximum trials.
If the findings of a usage and attitude study conducted by market research
agency Indica Research across 1200 adults in Sec A and Sec B households in
Delhi and Mumbai are anything to go by, then its not just champagnes and colas
that qualify as social beverages.
-3-
The average Indian may have a legendary weakness for mango, but when it
comes to preference of fruit-based juices; his choices are in tune with
international trends. Therefore it is orange juice that is the most preferred fruit
juice flavour in India, followed by apple, sweet orange and mixed fruit.
The findings indicate that most packaged juice drinking consumers travel
abroad on holidays.
Awareness levels are similar in both Mumbai and Delhi; more trials are
generated by Delhities than their counterparts in Mumbai.
The consumers are starting to perceive fruit juices at home. While 55% of the
respondents consumed 1- litre packs at home, 45% consumed 200ml packs.
The fruit beverage market has more acceptances in Northern and Western India,
which is due to the climatic conditions prevailing there with relations to the rest of
the country.
-4-
Market Segmentation:
There has been no general acceptance of the product forms in the fruit beverage
market. The consumer is basically concerned if it is a fruit juice or synthetically
constituted product. Product segmentation, therefore, should be clearly delimited.
Under the fruit drinks the first segmentation is between real fruit drinks and
synthetic drinks.
The real fruit drinks are based on natural fruit pulp or juice.
The synthetic drinks are synthetic products with fruit or other flavors.
Broad taste preferences could be another way to define the market. The
market is at present also segmented on the basis of fruit pulp content. For the
purpose of segmentation, on the basis of fruit pulp content. For the
purpose of segmentation, on the basis of fruit pulp content, market can be
segmented as:
Fruit juice with pulp content more than 80%. Brands falling in this
category are Onjus, Real, Tropicana, etc.
Fruit Nectar with pulp content between 40% to *0%. Life and Xs come
in this category.
Fruit Drinks with pulp content less than 40%. Frooti and Jumpin are
the popular brands in this category.
-5-
People who are on the move i.e. Outdoor use e.g. those traveling.
People who are using it on the breakfast table as a part of their menu
i.e. in-house use.
Market Needs:
Consumers usually, are not going to accept something that doesnt taste good
even if it is good for them or has certain benefits. Companies working to bring a
new food product to the market have two questionsdoes it taste good and will
consumers buy it?
-6-
Market Trends:
Tropical fruits and flavours dominate the market, yet some consumers are still
hesitant to try unknown exotic flavours like cherimoya, guanabana and
carambola. Companies have found the best way to introduce exotics is in
combination with familiar flavours. A flavour combination that began in the new
age, 5% to 10% juice category, and has spread to other beverage categories as
well as to other products like kiwi, strawberry, etc. stating that it was a small
company that took the risk and won.
Smaller companies lead the way, as they are more willing to try exotic flavours
even though the larger companies have a larger staff and budget, and can afford
to search out the trends. The large companies tend to introduce prototypes that
are pretty well-tested. They are always interested in the next flavour trend, but
usually are not the first to debut it.
Fortified drinks are also gaining market i.e. the juice is processed and an
additional nutritious trait is added to enhance its wholesome value e.g. with
additional calcium, vitamin C etc.
One can notice the population in the country mainly in the cities becoming more
and more aware with regard to the nutritional aspect of life. This knowledge,
coupled with the consumers desire for a healthier lifestyle, has greatly impacted
the evolution of juice and juice-based drinks over the last few years.
-7-
Industry analysis:
The Rs 100 crore packaged fruit juice market is estimated to be growing at 20%
to 25% annually, with Tropicana and Real holding 40% market share each.
The market can be categorized in terms of product content and there are three
major product contents available.
The canned juice market initially covered brands like NAFED, Noga, Midland,
Gold Coin and Druk. These were fruit juices and nectars and not drinks. But they
did not make a mark in the market due to reasons such as high price,
unattractive packaging and lack of right promotion programme.
Parle Agros Frooti, a mango drink, was introduced in the tetra pack in 1985 and
since then has been a leader in its segment. The market has suddenly picked up
since 1994-95 and a few players have emerged as market leaders.
-8-
Brand
flavours
1. Parle Agro
Frooti
Appy
Apple
Tropicana
Slice
Real
Real Active
Orange, Apple
Jumpin
Orange, Apple
Re
Orange, Apple
Xs
Orange, Apple
5. Coca Cola
Maaza
Mango
6. BBI. II
Tree Top
Mango
7. Voltas
Volfruit
Mango
8. Hindustan
Grapy
9. HP Agri
HPMC
Apple Marketing
NERAMAC
Pineapple
Milma
Mango, Pineapple
2. PepsiCo Ltd.
3. Dabur
4, Godrej Foods
-9-
Regold
Gold Coin
Apple Juice
Rasika
Mango, Guava
Efil
Mango, Litchi
16. NAFEED
Nafed
Vadilal
Himgiri
VAFA
Sunsip
TIMS
ROLZ
NOGA
Pineapple Agro.
[The above mentioned list consists of the brands noticeable in metros and as
such there are a large number of small canning units scattered all over the
country catering to niche markets.]
- 10 -
Imports:
With a whole range of product lines opened up for imports over the past 14
months, these exporters have now full freedom to exploit the huge Indian market.
The fruit juice market in India is not yet large enough to justify investing.
Today the consumer has got a wide variety to choose from as many foreign food
and personal products can come in unrestricted now. The Indian market place
has seen a dramatic increase in the range and quality. There is expected to be
some level of competition in these areas. Quality will have to improve and
manufacturers will have to be more cost effective.
Proliferation of product range is also proving to be a problem for retailers with
limited space on their shelves. With Indian producers also improving and
enhancing their variety, products are jostling for space.
Consumers belief in India products too is going up; earlier issues were of
durability and poor shelf life. Now, Indian products have moved up to the next
level. This could make it tough for imported products to make a dent in
established categories, especially where there is a substantial price difference.
The complex sales tax structure In the various states confounds the exporter of
fruit juices for instance, it is myriad varying from state to state i.e. Central sales
tax in Delhi at 85 and in Kerala it is 20%, while Maharashtra has VAT plus octroi
hence fixing prices is quite an exercise and when you add on these, the product
becomes expensive. Right now, sale of imported goods from stores is at the top
end and is small percent of store turnovers. But this is expected to go up in the
years to come. Imports may not really make an impact in the market, but could
allow legitimacy to some of the products that come through the grey market
channel.
- 11 -
- 12 -
The imported products on offer in most stores stocking foreign foods reveal
that they are close to their expiry dates.
Most such products available now come through the grey market. Most of
these products, especially those that come from South-East Asian countries,
are imported by agents who supply to stores. As the imported process itself is
a long drawn out affair, often food products land up on shelves quite close to
their expiry dates and there is also a danger then of agents tampering with
expiry dates and consumers buying stale food.
The other problem that retailers face is that since they are dealing with agents
there is a problem of returns of products when they are past expiry dates. Its
not an issue when a retailer is dealing with a company as there is a
mechanism for accepting returns. At times companies are seen to import
through their own channels and supply it to the retailers.
India is a difficult market mainly because of delays at the docks, tariffs and
duties on various products, bribery and corruption and the lack of a cold chain
(for horticulture produce). Things when they arrive do not get straightway into
cold storage i.e. the inadequate infrastructure to handle the distribution of
fresh produce, which causes a rapid deterioration in the quality.
Therefore, while there could be more brands in the organised juice market, the
bigger chunk of the market will, in all likelihood, continue to be with the already
existing players. Fruits and their derivatives are expected to enter India in huge
quantities and once the market becomes bigger and volumes come in, prices of
imported goods are expected to come down.
- 13 -
Substitute:
Fruit juice companies have to face a two level competition i.e. on the first level
with the substitutes and the then the players within the industry. The sip war is
comprised of the following players with respect to India.
Soft Drinks are divided into carbonated and Non- carbonated drinks. While Cola,
lemon and oranges are carbonated drinks mango drinks come Non- carbonated
category.
Just like fruit drinks Flavoured milk is also positioned on the health platform.
Companies are trying to project it as a fun drink with added flavours and
innovative packaging.
Mineral Water
Fruit drink sellers consider even mineral water as substitute to their offerings. The
main assumption is that packs ensure quality delivery.
Other products
Milk by- products like buttermilk and lassi also serve as major substitutes. They
compete in terms of low price as well as easy availability. These drinks are also
considered important from the health perspective.
- 14 -
Distribution patterns:
Distribution network and reach are vital factors for success of the brands in the
fruit beverage market. It is mainly the distribution strategy that the companies are
focusing upon.
The distribution is mainly done through stockist. The companies also have
franchises that work as a separate entity. Some companies also have their C & F
agents to give the product to the distributors, who further distribute to the
retailers. To co-ordinate the things properly with the distributors, companies keep
their own field force.
Below the figure shows the many ways the companies in this industry are seen to
be operating:
Franchises
Stockist
Agent
Distributor
Retailer
End User
- 15 -
The urban Indian retail sector has traditionally been structured around three
small retail entitiesthe grocer, the general store and the chemist.
The grocer stocks non packaged, unbranded commodities such as rice, flour,
and pulses, as well as branded fast moving consumer goods (FMCGs)
Others:
Ice-cream parlours,
These retail outfits stock branded FMCGs that gel with their businesses.
Supply chain integration does not quite matter in the case of the small retailer
because of the small scale of his operations. He normally deals directly with
wholesalers with whom he is able to negotiate rates.
Retail consolidation (consolidation of buying power) among supermarket
operators is unlikely to hurt small retailers simply because it will affect
manufacturers directly, who will not want to compromise on the distribution reach
to offer large volumes to a few big retailers.
The small retailers form an integral part of the wide distribution network set up by
the large FMCG companies. Marketers have also found that private/ store brands
from supermarkets can prove to be a threat to their own brands and hence,
desist from encouraging retail consolidation.
- 16 -
So small packs are well suited for travelers and children and large
take home packs for families and price conscious people.
- 17 -
This has implications for the need for availability of the product and in
the right form.
Brand loyalty is very low, as all the products taste the same.
They do not want to change their taste and are stuck to their old
brands.
Orange and other drinks are slowly picking up and breaking the loyalty
towards old brands.
- 18 -
Main Competitors:
A host of brands are jostling for thirst space. Not just colas but beverages and
fruit juices of all hues are adorning shop shelves. From bottled iced-tea to
branded chhaas, fruit-based drinks and flavoured milk, beverage makers have
gone berserk with product innovation as new variants continue to flood the
market.
Fruit drinks are high on the swig list in summers as it is part of the health fad
sweeping the nation. Health conscious consumers are increasingly giving
aerated drinks the go by and making a beeline for fruit-based concoctions.
Moreover, sporadic controversies about pesticide-infested cola drinks are said to
be driving consumers towards fruit-based drinks as a safer alternative. That is
why even existing players are going all out to pour out new flavours.
Dabur:
Dabur Foods that was set up in 1997 has brands like Hommade, Lemoneez and
Capsico in its basket. The Rs. 37 crore Dabur Foods ltd, a wholly owned
subsidiary of Dabur India ltd ahs two brands of juice in the market, they are;
Real
Real Active
Grape, Guava, Orange, Pineapple, tomato, Mixed Fruit, Litchi and Mango.
- 19 -
The Real Active brand is targeted towards fitness- crazy young consumers. The
drink is positioned on the health plank. It was launched towards the end of 2002.
At the same time, the company plans to position Real Active as its premium juice
brand, while Real would be targeted at consumers belonging to socio economic
categories B and C also. It contains only fruit concentrate and water. It is priced
at Rs. 68 and 70. It is available in the Flavours of;
The company was eyeing a turnover of Rs. 60 crore in the year 2001 -02, which
is an increase of nearly 50%. According to the company it ahs seen a growth of
44% in the financial year 2001-02 as compared to 34% in 2000- 01. The
company plans to increase the advertising spends for the brand by nearly 40%.
Today the advertising and marketing budget for the brand by nearly Rs 8 Crore.
The companys thrust is on increasing in-home consumption therefore they are
mainly targeting the mothers and children.
However, the company has restricted its activities in the urban areas only and
wishes to fully consolidate markets in the cities before looking at the small towns
and rural areas Dabur Foods claims to be the market leader in the pure juice
category such as Punjab, Delhi, Haryana, etc.
- 20 -
PepsiCo:
The Pepsi operations in India are now the part of the new Asian division of
PepsiCo Beverages International formed by the merger of PepsiCola
International, Tropicana and Gatorade, the sports beverage company acquired
from Quaker Oates. Earlier, India was one of the eight business division of the
beverage company that used to report to PepsiCo International in New York
directly. Now it reports to PepsiCo Beverage International Asia in Hong Kong.
PepsiCo Beverage International is a division of PepsiCo Inc. This move has been
prompted by the need to give greater regional focus to new products like
Tropicana and Gatorade so that they become a key element of the overall
portfolio of the US beverage major.
PepsiCo Inc. is one of the worlds largest food and beverage companies. The
companys principle businesses include:
Pepsi-Cola beverages
Tropicana juices
Quaker Foods
It is also planning to give a major thrust to the juice business through the launch
of a host of new products under the Tropicana brand name i.e. on the health and
energy platform. PepsiCo has so far invested around Rs. 100 Crore inn ready to
- 21 -
drink juice segment where the company has two brands Tropicana & Slice. It has
14 plants in India producing fruit juices & 2 of them work on tetra pack.
Tropicana:
Tropicana entered the country in 1998. Tropicana is currently imported in a
concentrated form, which is later reconstructed at a plant in Baramati, near Pune
and vacuum packed into tetra packs after paying an import duty. It covers around
18 cities of India. The factor of its success is that it has a tightly controlled
distribution system on top of an equally controlled production and this in turn
helps it keep its taste constant and the company boasts of it too.
Tropicana Beverage Co. recently announced the companys inclination towards
bringing in an entire series of juices and other health drinks from its international
portfolio into India in the coming years. The Tropicana brand, per se, has been
positioned on the health platform.
Pepsi also plans to give its juice brand which has seen many hurdles in the
nascent and niche juice market a renewed thrust in the coming days. A price
revision of the brands is also on the anvil.
Since 2001, Tropicana roped in celebrities in the field of nutrition and health to
sell its brands. Under which they got renowned people in the field of health to
recommend their clients to use their brand. The list of names included the likes of
Anjali Mukherji, Sabina Sehgal Saikia and Vandana Luthra, who promote the
brand, positioned as a health drink, to their upwardly mobile clientele. Even
celebrity doctors and pharmacists were included in its list of marketers. Tropicana
is also sold through various health clubs like Talwalkars, Personal Point, etc. in
Mumbai and Delhi. In the past as a part of its promotional activities, the company
had conducted a Tropicana Health Run in the capital, slated for World Health
Day, which was on April 7, 2001. Tropicana also runs a programme called The
Tropicana Club under which every time one buys a pack of Tropicana he earns
- 22 -
points which he can collect and exchange for a wide range of gifts and also, as a
member he gets unique offers, exciting gifts and interesting information on
keeping fit and looking good.
The company is seen to intensify its distribution network, with a greater thrust on
large institutions. Apart from retail and consumer level promotions, Tropicana is
being promoted through health bulletins and health leaflets. The company
intends to continue with its unconventional retail thrust. Apart from the 20,000 to
25,000 outlets across 18 cities that Tropicana has a presence in, the brand is
being placed across gymnasiums, fitness centers in 5-star hotels, coffee shops,
airlines, hospitals, offices and health stores. These points of consumption are not
consequential in providing high volumes, but important from the imagery point of
view. Typically, non-retail stores have been contributing 12 15 % of the brands
sales. Tropicana evokes a high brand loyalty among health conscious middle
and upper-middle class segments. The company is seeking to project itself on
the health platform and has an ad spend of around 20% of its sales.
The brands existing tagline of Taste of Good Health has now got an extension
statement of Dont forget the juice, Tropicana 100% pure fruit juice. Tropicana
is packaged in a 200 ml slim pack [which replaces its 250 ml pack] and 1-liter in a
flat pack tetra pack. The company is seen to run promotions in coordination with
its other offering like a scheme where 16 gm pack of Lays Magic Masala that
comes free with a 200 ml pack of Tropicana. Worldwide, Tropicana has a host of
juice brands under its belt. Brands like Twister, Dole, Looza, Fruvita and Juice
Bowl, which could find their way into the Indian market in the coming years. It has
decided to make changes in the composition of its juices to suit the Indian taste
buds. For instance, realizing that Indians like a sweet flavour, it decided to launch
a separate sweet orange juice product specifically for the Indian market. Since it
could not dilute its juice content, it decided to substitute part of it with grape juice
to make it sweeter. Even its launched tomato and mixed fruit juices have been
altered to suit the Indian palate.
- 23 -
- 24 -
Pepsi, in association with foods and toiletries major Hindustan Lever, launched
Lipton Iced Tea in returnable glass bottles and PET bottles. It has also introduced
Mirinda in apple and strawberry flavours. Pepsi had earlier said they planned to
reduce their dependence on cola and bring it down to 40 per cent of total sales in
the next few years. Pepsi came on aggressively with its "Oye Bubbly" campaign.
Coca Cola promised consumers a date with Aishwarya Rai with its "Thanda Aish
Cash" promotion. It also promoted ThumsUp through March and April with its
"Hai Dum?" campaign featuring Bollywood actor Akshay Kumar.
Parle Agro:
Parle Agro Private Ltd is looking at product expansion in its various business
segments to sustain growth in a sluggish market. In the fruit drink segment where
Parle Agro has a hugely popular product Mango Frooti, it is planning to get into
orange and pineapple under the same brand of Frooti. While orange pulp will be
imported from Brazil, pineapple will be sourced from Thailand.
At the same time, it has also embarked on stretching the franchise of its existing
brandsFrooti, Appy and Bailley Mineral water. It knows the market and has
sustained its brands in spite of the huge unorganized segment. Besides, the
company will use its existing distribution network to get into the new categories.
At the moment, its only advantage is its distribution strength.
- 25 -
Parle Agro boasts of a franchise network which few can match. It has two
different sets of franchisees for its packs (11 franchisees) and mineral water (18
franchisees) that manufacture and distribute its brands. It ahs also attempted to
venture into direct distribution by engaging special trucks to transport its brands
to retail outlets. For instance, in Mumbai, it has 50 trucks plying between its
factories and the outlets. Besides, future plans include introduction of the same
direct distribution system for its franchisees across the country.
Flushed with funds after selling of its portfolio of soft drink brands, Thumps Up,
Limca and Mazza and bottling facilities to Coca-Cola the company has enough
cash and this is evident since it has not got listed. It also has a massive
distribution network to reach its end consumer. Besides, the goodwill of the Parle
brand is a great help in its new ventures.
The fresh n juicy Frooti brand, is dominating the packaged fruit based drinks
category since its launch in 1985. Frooti Mango, which has 75% market share in
tetra packs, grew by a modest 4% in 2001 according to ORG-Marg data. Larger
pack sizes (1 liter) and more pure juices (such as orange and pineapple) would
soon appear under the Frooti brand, taking on the existing competitors in these
flavours and sizes brands such as Tropicana, Real and Onjus.
Frooti has always been positioned as a drink for kids but now the company is
looking forward to position it as a drink for the youth, especially, the college going
teenagers. This was the basic rationale behind the Digen Verma Campaign,
where a real life, down to earth person, who, like any college student likes to
bunk classes, is a good sportsman and is a popular figure in the college, with
whom the teenagers could actually associate themselves with Digen Verma.
Parle Agros product portfolio includes Appy, Frooti and N-Joi (a milk base drink,
which are priced at Rs 10. New PET bottles have been introduced in 1 liter and
- 26 -
- 27 -
Godrej:
Godrej Foods Limited is into the business of manufacturing and selling
processed foods and trading of vegetable oil. The company has a number of
leading cooking oil brands like CookLite, Godrej and fruit juice brands like
Jumpin, Xs, refresh in its product portfolio. The companys main source of
revenue is its oil trading business, which makes performance of its business
highly dependent on commodity price trends.
It has 3 fruit beverage brands in its product portfolio, while Jumpin and Xs are
national brands, Refresh is available only in states of UP and Rajasthan.
Jumpin:
Jumpin brand is positioned as a fruit drink. It is available in the flavours of
orange, pineapple, apple and mango. Jumpin is available in 200ml and the price
for all the flavours are Rs 10.
Xs:
Xs is targeted towards adolescents positioned as nectar drink. Xs is available in
following flavours litchi, mango and guava and it is priced at Rs 15 for the 250ml
pack.
Refresh:
Refresh is positioned as a mass market drink but targeted towards adults.
Godrej Industries' foods division with its XS fruit juice launched in 1998 in litchi,
guava and mango flavours. Exotic blends of Godrej include fruit juice Berry Blast
(strawberry-cherry-black currant) and Triple Tickle (apricot-peach-apple). The
new range is priced at Rs 15 for 200 ml and Rs.65 for 1000 ml. Godrej Foods,
"The idea is to come out with exotic flavours that will combine great taste with
attractive packaging for the youth." With the new offerings, he expects to see a
30-40 per cent rise in sales.
- 28 -
- 29 -
Product
Kiwi fruits are small oval fruits with
a thin brown skin, soft green flesh
and black seeds. They are rich in
many
Vitamins,
flavonoids
and
- 30 -
Prevents Asthma
- 31 -
Gold Kiwifruit
Green Kiwifruit
Main Functions
181 ug/100g
Flesh
158 ug/100g
Flesh
Vitamin E
Bearing
Phenols
3.025 mg/100g
Seed
2.72m g/100g
Seed
Inhibit OxidationEnhance
ImmunityParticipate In DNA
SynthesisSlow Aging Inhibit
Mutation Prevent Cancer
Vitamin C
Anti-Scurvy
Acid
135.96 mg/100g
Flesh
154.95 mg/100g
Flesh
Accelerate CollagenSynthesis
Stop Bleeding Accelerate Amino
Acid MetabolismInhibit
OxidationActivate
FolacinExpel Toxin
Chlorophyl
481.50 ug/g
Peel
222.51 ug/g
Peel
Arginine
0.0953%
Flesh
0.0463%
Flesh
Se
3.17 ug/100g
Seed
1.53 ug/100g
Seed
Polysaccharide
4.56 g/100g
Peel
3.44 g/100g
Peel
Inhibit OxidationPrevent
CancerInhibit MutationRepair
& Shield CellsLower Blood
GlucoseImprove
ImmunityAccelerate DNA
SynthesisStrengthen Marrow
Hematopoiesis
Polyphenol
Seed
8.47m g/100g
- 32 -
Inhibit Oxidation
Monkey Peach
Alkali
0.82 %
Seed
Seed
ConvergenceStop
bleedingAntisepticPrevent
Cardiovascular Diseases
0.83 %
Seed
- 33 -
Product Description:
This product is actually a mix of 20 percent pure kiwi juice, water, and cane
sugar. With a strong, accurate kiwi flavor, this could actually turn out to be a
pretty tasty orange juice substitute a possible motivation for placing a highvisibility Vitamin C label across the front of the package.
1) Kiwifruit Juice in 250ml PET Bottle
Product code: KS250ML
Description: Kiwifruit Juice
Packing: 24 X 250ml
Gross Weight: 12.5kg
Approx. Qty per 20ft FCL: 1400 Cartons
- 34 -
This product comes attractively packaged in a 1.2 Litre PET Bottle with a
recommended dilution rate of One (1) part concentrate to Seven (7) parts water.
This variant offers value for money and convenience for those with large families
or entertains frequently.
It is also ideal for the foodservice establishments as it requires minimal storage
space and no refrigeration is required, allowing them to cater for large functions.
Stored at an ambient temperature away from direct sunlight or heat, the
Concentrate has a shelf life of one (1) year from date of production. Upon
opening, the product should be kept refrigerated. KiwiJoos are best served
chilled. MRP of this 1.2 Lt bottled drink will be Rs. 130.
- 35 -
3) Kiwifruit Juice Drink in Tetra Brik Aseptic 1litre and 2 litre Slim line Re
Cap
This Tetra Brik variant is UHT processed, contains no preservatives and comes
with a convenient re-sealable non-drip spout. It is an ideal choice for active
families or individuals who want a convenient yet nutritious thirst quencher. With
this addition, KiwiJoos has now a wide range of packaging choices to suit both
consumers and retailers.
Foodservice operators looking for a shelf safe; space saving re-sealable
packaging can now opt for this variant. The Tetra Brik variant has a shelf life of
one (1) year from date of production when stored at ambient temperature. Keep
away from direct sunlight and heat. Keep refrigerated upon opening. KiwiJoos
taste best when served chilled. MRP of this 1 lt Tetra pack will be Rs. 90 and
MRP of 2 lt Tetra pack will be Rs. 180.
.
- 36 -
This is a Ready-To-Drink variant ideal for foodservice operators catering for large
volumes. The product offers a refreshing change to your beverage menu and is a
versatile ingredient for concocting cocktails or other non-alcoholic cocktails.
Storage is convenient, as it requires no refrigeration. The product has a shelf life
of one (1) year from the date of production when stored at ambient temperature
away from direct sunlight and heat. The product should be kept refrigerated upon
opening. KiwiJoos are best served chilled. MRP of this 5 lt HDPE tub will be Rs.
400.
Future Products:
Kiwi wine
- 37 -
Packaging:
Juices can be found in every type of packaging. In early days, cans and glass bottles
were the only available types of packaging. Today, the assortment includes PET
bottles, sports bottles and brick packs.
Introduced to reduce shipping weight or to allow small children to pour their own
juice, PET bottles provide another benefit: shatter- resistant properties. Juices found
in refrigerator case typically come packed in gable-top cartons. The newest
innovation in cartons is the re-closable plastic cap. Some single- serving juice drinks
come in sports-top PET bottles. Some companies concentrate on proprietary
packaging, with easy grips or unusual eye-catching shapes.
Packaging is an important part of promotion today hence the company has decided
that KiwiJoos will be served in transparent PET bottles for all the quantities and will
carry the company Logo/ Symbol, nutrient value of the juice and the statutory
requirements like the ingredients etc.
State of the art production and packaging technology is a must in this industry. This
gives an edge in packaging and ensuring freshness of product besides enhancing
the image.
Companies should take into account the regional taste preferences and build
products to serve the same. Various concoctions and formulations in the US and
other foreign markets suggest that such strategy is necessary to live the image of
the company and remain in the forefront.
Innovations in terms of ethnic flavours and mixes will pay off. With respect to
KiwiJoos we must make sure we increase our product baskets as we cant exist
with only one flavour and many flavours will also help in leveraging and ensuring that
there is optimum utilization of resources.
Global sourcing strategy will give an edge over other players in terms of both cost
and quality advantages.
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The product mix, promotional mix, pricing mix and distribution mix should be made
effective and should be flexible in all sense it should help us to combat the primary
competitors i.e. players in the fruit beverage market and the substitutes i.e. soft
drinks, flavoured milk, mineral water and unbranded sector.
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SWOT Analysis:
Strengths:
Innovative flavour hence we are bound to get the attention with proper
communication.
We can gain incentives as we will be a SSI and so we can pass these to capture
more market.
Weakness:
Our distribution set up initially will be weak when compared to the others in the
market.
Kiwi as a fruit is new in the market and not all people take the risk of
experimenting with taste.
We are entering the market with only one flavour and our next flavour will be out
only after six months of the first launch.
Our financial constraints with respect to our competitors demand that our
resources are used optimally.
We will not be able to price our product lower than the others in the market as we
have a longer distribution channel and managing this channel also will be an
important task. Also as our product is not available in India its cost of acquiring
increases and therefore it cannot be sold at a low price in the initial stage.
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Opportunity:
The market is in a growing stage and fairly small in terms of market share as
compared to other thirst quenching and healthy drinks so at this stage our entry
is expected to be noticed.
The market has a presence of only few players and they are not too aggressive
in their acts.
More and more people in the urban areas are getting health conscious and are
making fruit juice a part of their daily diet. Hence the market is growing.
The government policies are expected and are showing trends to encourage the
food processing industry.
The kiwi fruit can be then cultivated in India in the regions of Himachal Pradesh,
Uttranchal Pradesh, Sikkim, Arunanchal Pradesh, Meghalaya, Jammu and
Kashmir and Nilgiri Hill, to cut down the cost of imports of the fruit.
Threat:
Our competitors are deep pocketed and they could harm us by getting
aggressive in their promotional activities.
The competitors have strong brand images in the market because of their other
businesses and their presence in the market from an early stage.
Others can adopt the flavour and the value of a unique flavour could be
neutralized soon.
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Marketing Strategy:
Marketing Summary:
Pursuant to our company policy stating "Quality First, Credit Prominent", we process
our KiwiJoos with strict production standard, quality control and sophisticated
processing technology, we at all time provide our consumers the natural and healthy
Kiwifruit juice.
KiwiJoos is a new flavour in the market and the company is also new so its
marketing budget cannot be limited. So the strategy will be to enter the market with a
big bang. Developing visibility and brand equity is the key. KiwiJoos will be
advertised in different media with respect to our target market i.e. the women of the
house and children who are an important influencing factor in todays scenario. The
teens are the most who like to try out new and different products so even they are an
important target audience.
In addition to the advertisements which will be used to drive consumer sales,
KiwiJoos will leverage a networking campaign with respect to the distributors and
sale promotion at the points of purchase i.e. local restaurants, gyms etc. to drive
commercial sales.
KiwiJoos will be on the shelf in all markets by 15 th February, the company will start
supplying its stock by 6th February. The promotional activities will start from 12 th
February.
Mission:
KiwiJoos mission is to provide the highest quality of fruit juices. We exist to attract
and maintain customers. When we adhere to this maxim, everything else will fall into
place. We will ensure that our products will exceed the expectations of our
customers i.e. we develop a competitively superior value proposition and valuedelivery system.
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Marketing Objective:
Generate brand equity at the markets we are catering to as well as within the
supplier and distribution networks.
Financial Objectives:
Realize a 3% increase in the gross profit margins through efficiency gains every
year.
Reduce the logistic cost associated with product delivery by 10% by the end of
the first five year of operation.
Target Markets:
Children
The teenagers
In-home consumption
The women of the house and children are an important influencing factor in todays
scenario. As the KiwiJoos contains lots of health benefits, the women who care for
her family wants her family to be healthy and so are they are targeted.
The children are attracted to the beautiful ads and demand for the products as they
want to experiment things just for the sake of it or for their self satisfaction.
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The teens are the most who like to try out new and different products. Todays teens
are the most health conscious and put in lots of efforts to be healthy. So even they
are an important target audience.
In- home consumption:
This group of people buys fruit juices for home consumption and in many case
treated as grocery item and is on the shopping list and forms an important part of
their diet.
For an average Indian population juice consumption is seen as a luxury and is a very
urban phenomena as people in the urban are getting more and more health
conscious and relating and accepting juices as a healthy social drink. These people
are typically sophisticated and are exposed to the idea of healthy living and are
concerned of the well being of their families.
Usually the lady of the house takes the buying decision but she is influenced by her
offsprings many times to the extent of brands and flavours.
One of the strong characteristics features which is common throughout our target
audience is that it is considered that juice is fresh only when it is extracted on the
spot for consumption purpose and it is considered to be better than the packaged
ones available in the market. This mind set will have to be changed and the
customers will have to be convinced that KiwiJoos is fresh, has all the nourishments
intact and is available without the hassle of extraction for consumption.
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On roads i.e. in front of the general stores, railway stations, bus stands, airports
etc.
The key to serving this segment would be to be available and visible at points of
purchase and including the person to buy, with effectively communicating to them
that KiwiJoos is a healthy alternative to satisfy the thirst ensuring taste, fun and good
health.
It is positive that fruit juices are being perceived as anytime beverage. Generation
now is as much inclined to sipping fruit juices as colas, with teenagers driving the
maximum trials.
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Positioning:
KiwiJoos will position itself as a no compromise drink where a person does not
have to make any compromise with the fun element of having the refresher and the
health element and that it is also socially appreciated/ accepted.
It will be communicated to the customers that nor do they have to make any
compromises and that nor do the producers make any compromise in bringing them
KiwiJoos which is made from fresh kiwi fruit and is produced under a well controlled
and a healthy environment.
To put our point forward initially we will be using the tag line:.and
we will be promoting the kiwi flavour as Exotic Kiwi.
Brand Logo:
Strategies:
The single objective is to position KiwiJoos as the natural and healthy Kiwifruit juice
in the cities it is served, commanding a 30% market share within 5 years. The
marketing strategy will seek to first create customer awareness regarding product,
develop the customer base and work towards building customer loyalty.
KiwiJoos seeks to communicate the message that it is the natural and healthy
Kiwifruit juice in the market and will help them in not compromising on fun and health
and that a customer can have both.
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Marketing Mix:
Marketing mix comprises of approaches to price, distribution, advertising and
promotion.
Pricing:
Price is the marketing mix element that produces revenues, the others produce
costs and it is also one of the most flexible elements as it can be changed quickly,
unlike product features and channel commitments. India is known as a price
sensitive market i.e. an Indian customer wants more value at low price.
The companys objectives with regards to pricing is to survive the resistance from
the existing players, maximize profits and increase its market share in the five cities
it is catering.
KiwiJooss pricing will be a premium pricing. As we are targeting the sec A and sec B
of the middle class and also the Elite class the price must be affordable to
consumers. Consumers are ready to shell out little extra money for the exotic and
classic drink that has many health benefits. Even though we are catering only one
flavour initially the pricing is close to the competitors pricing.
KiwiJoos will be priced as follows:
250 ml Rs.30
01 liter Rs. 90
1.2 liter Rs. 130
02 liter Rs. 180
05 liter - Rs.400
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Distribution:
The distribution or reach factor is a marketing mix element that needs to be
monitored over a period of time. Unlike product improvement or positioning
strategies that are extremely sensitive to consumer preferences and changes,
distribution inertia could dawn on the company over a period of time. An attempt to
link distribution with the changing environment will ensure that a great deal of slow
damage is averted. As consumer behaviour changes, competition picks up and the
product moves through its life cycle, new channels may have to be considered,
evaluated and chosen.
The company Shreeji Enterprises Pvt. Ltd has its KiwiJoos manufacturing and
packaging plant in Nasik. The Kiwi fruits will be imported from New Zealand based
company Zespri International Limited.
The company will be moving in the first phases i.e. the first year we will have an aim
of entering only few major cities of India and establishing our brand with Kiwi flavour
which will be seen as a launch-pad for our other offerings i.e. flavours. The initial
launch will be in the following cities:
Chennai
Bangalore
Delhi
Kolkata
The transportation to the cities will be basically through rail and road depending on
cost effectiveness. The inventory level will be decided with respect to the season
and in coordination with the distributor and the company representatives. The
company will have its representatives positioned at each city that will coordinate with
the distributors and the company will interact with the retailers inorder to ensure the
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company first hand information about the product with relation to the customers.
There will be 5 representatives stationed at each city who will have to make 40 calls
a day in their respective territories.
To keep the channel active and result oriented following initial steps will be taken;
Supermarkets
Hyper Mall
Petrol pumps
Ice-cream Parlours
Bakeries
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In certain areas such stores may not exist so in these areas the bottles will be
available at specific stores at the discretion of the representatives and distributors,
these stores should be able to serve the basic idea.
The effectiveness of our channel will only be known when we assess our chosen
channel on the following criteria:
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Promotional Strategy:
The promotional efforts will be on two fronts i.e. on our direct customers and the end
consumers. This should ensure KiwiJoos a push from the distribution and a pull from
the customers.
All our promotional efforts should serve some basic criteria like the activities should
carry a feel good appeal and should enhance emotional attachment of the target
with KiwiJoos.
KiwiJoos will be advertised in cost effective media like newspapers, radios,
hoardings, at bus stands, and the most important and effective will be through TV
advertisements. There will be some cosmetic variations of these advertisements
when they are launched across the country. Regional celebrities who appeal to
consumers may also be used in advertisements intended for various regions these
celebrities will represent our positioning.
Sales Promotion:
We will be tying up with few other marketers and piggy backing our product on
theirs; this is expected to give us access to the shopping list and homes of our
target. Marketers that we intend to tie up with will be the ones that have a place in
the shopping list of the lady of the house e.g. branded wheat, salt, frozen
vegetables, magazines etc.
The company will also tie up with supermarkets and other stores, which are mainly
volume oriented, by piggy backing our product on their in-house products. Both the
above routes will help us in sampling our products to our target customers and in the
right manner.
Attention will be given to the presentation part too, POP materials, store displays,
stickers etc. will be used to create awareness at the retail outlet.
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Advertising:
Advertising will be exercised with a media mix, which will consist of:
Print Media:
Print Media will be used in the form of news papers of various languages. Print
media will be mainly used with a purpose of communicating and complimenting our
sales promotion schemes to pursue and gives us visibility.
Audiovisuals:
Television as a media will be used to inform the qualities and benefits of KiwiJoos
and give us visibility and build the brand image with the customers. The
combinations of TV channels will be used at different intervals. The channels will be
selected keeping in mind our target i.e. the lady of the house channels showing
good TRP ratings for their soaps; the influencers i.e. her offspring music, movie
channels, cartoons, etc.
Audio:
Radio will be a key element in our media mix as it is cost effective and will cover our
catering cities precisely. Under the brand name we will be running contests,
sponsoring programme, etc. This will help us reach out to our target audience and
the influencers.
Outdoor:
Outdoor communication will be done to help us get the visibility i.e. with the help of
Hoardings, which will be placed at areas that are prone to traffic jams and at toll
Stations. Railway stations in Mumbai will be a good target area for such print media
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as it also has maximum visibility because majority people travel daily by trains to
work. In respect of this media the company will be very selective.
Posters:
Posters will be created by the company during the events and will be carrying the
company logo, brand name and the picture and the tag line.
Public Relation:
The company will be a part of events and/or will also be organizing its own events.
The events will be chosen on the core values of community relation and whole family
participation. The company will be a part of children and youth involving events like
college/ school festivals, meets, etc and only use these as a platform to getting
closer to their influencers and sample their product at a concession or commission
basis.
We will make our presence felt on the internet by hosting a website for the brand
KiwiJoos which will be named www.kiwijoos.com which will;
Give recipes
The website will be a tool to get closer to our customers and understand them better
and will serve an entertainment and utility value.
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Time frame:
An assortment of promotional tools will be used to increase visibility for KiwiJoos but
the promotional activities will be concentrated differently with relation to the seasonal
pattern in the country. India is a country with varying climate- winter, summer and
monsoon (heavy in west coast between June and September where as in East coast
during mid October to December). Though the promotional activities will be
continuous throughout the year but the degree and combination will vary. This is
intone to the perspective of the target market where it is noticed that soft drinks are
consumed less during the winters and the monsoon period.
Marketing communication budget:
In the initial period the marketing communication budget approved by the company
is Rs. 80 lakh to maximum of 1 crore. Later when our product portfolio is expanded
i.e. within a span of one and a half years from commencing operation the company
will adopt the percentage of sales method i.e. the company plans to spend 15% of
sales on promotional activities.
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Marketing Research:
During the development of the marketing plans, several focus groups will be used to
gain insights about our customers. These focus groups will provide us with helpful
insight, which will compliment the decision making process.
An additional source of dynamic market research will be the feedback mechanisms
with the help of our website www.kiwijoos.com , the contests which the company
will be a part of and the primary research which may be done by us or another party
if felt the need or in combination.
These will be the steps which will be taken to understand the brands position in the
customers mind and will serve the purpose of being close to our customer to
understand him better. Shreeji Enterprises Pvt. Ltd will work hard in analyzing and
implementing suggestions in order to improve its offerings aw well as to show its
commitment to the customer and convey to them that their suggestions are valued.
An important source of information will also be our competition. The company will
keep an eye on the competitors activities as they are a constituent of our
environment and their activities are bound to affect us. This will be done with the
help of the secondary data available and primary data from our customers, our
channel members and others.
Conclusion:
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