ASSIGNMENT

OF

MIDM

PARLE_________FROOTI

WHY HAVE THE COMPANY CHANGED THEIR PAKAGING

FROM GREEN TO YELLOW?

PRESENTED BY:

NARENDAR PAHUJA

SIDHANT BEHL

ABHISHEK CHAUDHARY

HARPREET SINGH

TEJASVI VERMA

GUNSWATI SINGH

DEEPAK RAO
HISTORICAL PERSPECTIVE

Drinks in the Ancient World

The original drink was, of course, water of Adam's ale. However when people invented farming
they invented other drinks.It is believed that beer was invented before writing. Certainly in
Ancient Egypt beer was a common drink. People drank it from large containers through straws
(to avoid drinking debris floating in the drink). In northern Europe the Celts also drank beer.
After the Romans conquered Britain brewing continued.Throughout the Middle East wine was a
common drink by 3,000 BC.In the Bible after the flood Noah grew grapes and made wine. He
also became drunk! However the Bible says that wine is a blessing from God although it
condemns drunkenness.The ancient Egyptians also drank mead, a drink made from honey.

Drinks in the Middle Ages

The Anglo-Saxons were fond of ale (beer brewed without hops). English brewers did not use
hops until the 15th century. They were not actually grown in England until the early 16th
century. In the 12th and 13th centuries vines were grown in England due to the mild climate of
that time. However in the 14th century the earth cooled and the practice ended. Wine was
imported from France and Germany and so it was expensive. Wine was also imported from the
Eastern Mediterranean. It was called Malmsey wine, which is a corruption of Monemvasia, a
town famous for its wine.During the Anglo-Saxon period and the Middle Ages cider was also a
common drink in England and other parts of Europe.

Drinks in the 16th and 17th Centuries

In Tudor Drinks It was not safe to drink water so for ordinary people drinking ale or beer was
essential. Young children drank milk but only the poorest people drank water. Ale was still the
main drink of ordinary people in the early 16th century but beer gradually became more common
and by the end of the century it had replaced ale.In the 16th century housewives were expected to
brew their own beer although it was also sold commercially. In the 16th century beer was not just
a drink it was also a food. It contained valuable nutrients.Cider and perry were common drinks in
certain parts of England in the 16th century. However in the 17th century cider making reached a
peak.Wine was still the drink of the wealthy as it had to be imported. Wine was still imported
from France and Germany but an increasing amount was imported from Spain and Portugal.
Sweet wine was still imported from the Eastern Mediterranean. In the 16th century wine was
often flavoured with spices.In 16th century England sherry, which was known as sack was also a
popular drink.The origins of brandy are obscure but it was a popular drink by the 16th
century.The origins of whiskey are lost in history too but by the 16th century it was being
distilled in Scotland and was a popular drink. People thought whiskey was medicinal.In the 17th
century rum was first distilled in the Caribbean.Gin was also first made in the 17th century. It
was invented in Holland early in the century and it was introduced into England in the late 17th
century. Gin soon became a very popular drink.On a more sober note the Arabs invented coffee
about 1000 AD. It entered Europe by the beginning of the 16th century through Italy. In the late
17th century there were many coffeehouses in English towns where merchants and professional
men met to drink cups of coffee, read newspapers and chat.Tea was discovered by the Chinese in
the earliest days of their civilisation but it only reached Europe in the 17th century. Tea came to
England in the mid-17th century. However it only became a popular drink after 1662 when
Charles II married a Portuguese princess, Catherine of Braganza. She made tea-drinking
fashionable among the wealthy. (At first it was too expensive for ordinary people).

OFFER

With consumers moving beyond traditional gifting options, Parle Agro, one of the leading food
and beverage players in India has introduced a new range of gift packs this Diwali for the
consumers for a refreshing respite. Packed in beautifully designed packaging, these gift packs
will offer the whole range of Parle Agro Products including Frooti, Appy Classic, Appy Fizz &
Grappo Fizz and LMN. The newly launched special gift packs will be coming in following
range: Frooti "Mango Mementoes," Appy Classic "Classic Compliments," Appy Fizz & Grappo
Fizz "Gift a Party," and LMN - "Box O' wishes." According to the company, these gift packs are
filled with the fresh fruit beverages suitably packed in tetra bottles.
Parle-Agro gift packs are priced between Rs 60 and Rs 155 and will be available in traditional
retail and modern trade outlets across the country.

Financial statistics

Frooti from Parle Agro is the largest distributed fruit drink with 85 % market share in India The
company's another revenue earning brand includes Bisleri water. The Bisleri brand of mineral
water is being made available across the country. It has a market share of 40 %.

Kolkata/Mumbai: Parle Agro, the Rs 950 crore FMCG company, has raised prices of its Frooti
and Appy Classic drinks after a decade. This has come at a time commodity prices have dropped
and several companies are seeking to lower prices to boost sales. Parle has raised prices of these
drinks by Rs 2 each for a 200 ml pack, to Rs 12. This, it says, will help it offer higher margin to
retailers. “While the recent drop in raw material prices have been an enabler, our margins are still
under pressure due to several factors like operational expenses as well as production and
packaging costs, which have peaked year-on-year,” said a company official. According to the
company, Parle Agro’s competition in the 200ml tetra pack products has always priced similar
products at Rs 12. “For all our brands, we have different stock-keeping units that cater to
different segments of consumers. For the cost-conscious consumer, there is a price point of Rs 5,
which is available in a 110ml pack of Frooti,” the official added. While the company expects its
sales to be hit in the short term or for a brief period, it does not see any long-term impact.
“Consumers have accepted the Rs 12 price point. It may come across as a risky proposition but it
is a risk worth taking, because these brands and products have already been accepted by
consumers,” the official said. To push sales for Frooti, Parle Agro is planning several marketing
initiatives like redoing the graphics for the Frooti brand. This summer, Frooti will undergo a
complete makeover and will sport different graphics on tetrapacks and PET bottles.
USP

What follows is an overview of the latest product offerings from different beverage
companies.
Parle's Frooti No 1 fruit drink
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 through more than 1,500
distributors and wholesalers directly and indirectly. India's first real fruit drink in Tetrapak is
available in three delicious varieties - mango, orange and pineapple - Frooti Mango from
premium Indian mangoes, Frooti Orange from chilled imported orange concentrate from Brazil
and Frooti Pineapple made from ripe juicy pineapple.
The company's another revenue earning brand includes Bisleri water. The Bisleri brand of
mineral water is being made available across the country. It has a market share of 40
%Meanwhile, Parle Agro is planning to tap the rural markets with its strongest brand, Frooti.
There are plans to set up a separate distribution network catering to these pockets with
modifications leading to value addition in the product itself. States Ch auhan, ``We want to
penetrate rural India not only in terms of the number of outlets but also with regard to frequency
of coverage. After all there are people out there who want to copy city folks.'' This should ensure
that the Frooti brand covers a tota l of one million outlets nationwide.Frooti is the first tetrapak
fruit juice in India. Launched in 1984, Frooti still holds a dominant position in the Rs300 crore
tetrapak fruit juice (TFJ) market.
Frooti over these years have carved out a niche for itself in the market. Frooti instantly caught
the fancy of Indian consumer with its tetrapak and some smart campaigns. Initially the drink was
positioned as a kids drink. The product was perceived as a healthy fruit drink by the mothers . So
within a short span of time ,the brand was an alternative to the “unhealthy” colas. The tetrapak
had other benefits also . Fruit juice is a perishable product and tetrapak have extended the shelf
life of Frooti because tetrapaks have 2 layers of paper and a plastic coating that ensured tamper
proof and enhanced shelf life.
Lured by the success of Frooti, there was a lot of new launches in the TFJ market. Players like
Godrej with Jumpin, kissan etc tried their luck in this market but failed to dislodge Frooti.

UBP

Frooti was positioned as a mango drink that is “Fresh-n-juicy” For over a 7 years, the company
promoted the product using that famous baseline. The product have tried to create excitement in
the market through a series of new variants and packing. But in late ninetees the brand was
facing stagnated sales. The company tried to excite the market with an orange and pineapple
variant but both the variant bombed. The came the experiment with packaging . The YO! Frooti
variant came with a slim paper can aimed at the college going youth.

Worried by the stagnating sales, Parle tried to reposition the brand to appeal to youth aged
between 16-21. The positioning changed to be more fun based. The package also changed. The
old green color of the bottle changed to more bright mango color with lot of graphics added to it.

One of the most famous marketing campaigns India have witnessed took place during the
repositioning. The campaign is the famous “ Digen Verma “ campaign. This campaign was
considered as one of the most successful teaser campaigns in India. The campaign lasted for 15
days started in February 2001. The campaign was about a faceless person Digen Verma. There

were p osters and outdoors all across the markets that had messages like “ Who is
Digen verma” “ Digen Verma was here” etc. This created lot of excitement in the market and
“Digen Verma “became the most talked about faceless name at that time. The campaign was
executed by Everest communication. But the campaign was not followed up and the hype was
not translated to long term brand building.

Frooti is basically a nectar based drink so it is not 100% fruit juice, it also have some
preservatives added to increase the shelf life. Although Frooti did not face much competition in
the category it created, competition came from a slightly different category, 100% fruit juices.
Parle saw the emergence of the “ 100% fruit drink market and launched “Njoy” brand but it did
not clicked. Parle could have extended Frooti to this market also .The brand Real from Dabur is
the main player in this category. Real effectively positioned itself as a premium healthy drink for
adults. Frooti was not able to appeal to adults and was considered as a mango drink while Real is
not restricted to any flavour. Frooti also changed its positioning statement from ‘ Fresh-N-juicy”
to “ Juice Up your life” which have not clicked with the customers.

Although Frooti enjoys a commanding (75%) market share , Frooti is facing stagnation. May be
some serious steps should be taken to increase the usage of the product. The launch of PET bottle
Frooti is a step in this direction. Recently Frooti also launched a “Green mango” variant just to
create some hype in the market. Frooti may have to reposition itself again to appeal to cola
drinkers.

TOPIC

Parle Agro, a Rs.600 crores food and beverage company, has introduced a fresh new packaging
for Frooti – India’s largest selling mango drink. The new packaging includes an updated color
palette and improved graphics. Frooti has been one of my favorite drinks since school days.
During that time, it used to come in this dark green and yellow, almost squarish type of package
that made it stand out from all the other beverages on the shelf. It was small, highly desirable and
tasted delicious. Its been a long journey for Frooti since, and the brand seems to be keeping up
with the times.The mango at the centre of the new package sports a headset, presumably as a
sign of today’s iPod generation who are extremely mobile and connected. I don’t know why, but
there seems to be a clever uncanny resemblance with the Apple brand – notice the mango curve
on the right along with the positioning of the leaf. I can’t help but draw parallels with Apple
iTunes for some strange reason.Parle Agro’s mango drink Frooti is now ready with a new look
and campaign that asks ‘Why grow up’.This season, Parle Agro will spend approximately Rs 15
crore on the campaign, starting with a TVC, which was conceived by team Creativeland Asia
and directed by Prakash Varma of Nirvana films. The campaign broke on March 13, 2009 with a
TV commercial, which portrays mango drink lovers across age groups enjoying the drink the
way it is truly enjoyed, without inhibitions and with contentious slurps. Elaborating on the
marketing and branding strategy, Nadia Chauhan, Director, Parle Agro, said, “The objective of
the new campaign is to contemporise brand Frooti and lay the foundation for a long-term
strategy, while being true to its core mango values. This season, we will spend approximately Rs
15 crore, including on ATL and BTL activities, for the brand.”

Chauhan confirmed that the campaign would be on air till May-end.

Raj Kurup, Chairman and Chief Creative Officer, Creativeland Asia, spoke on the plan for the
revamy, “Revamp for a legendary brand and a market leader cannot happen overnight. So,
Creativeland Asia and Frooti began its long journey last year to make the brand a more youthful,
contemporary mango drink. As part of the strategy, to reinforce that Frooti is the original mango
drink and as a tactical move, the ‘Mango ka ek hi naam’ campaign was created. While we were
talking to media then, we had mentioned that this is just a stop-gap and that we would be back
with a more contemporary Frooti next year.”

Kurup explained that the revamp exercise involved studying the brand, its history and its
strengths as well as taking an extensive look at the market, the target consumer and their new
values. In his words, “Cool comes from being unabashed about what you are and not by aping or
trying to be someone else. A mango cannot be a grown up, serious fruit. You can’t eat a mango
with a fork and a knife. The mango is a quaint fruit, it looks funny, is asymmetrical, people go
nuts having a mango. People get lost having a mango. It is a childlike fruit. Frooti embodies the
spirit of mango. Hence, we couldn’t try and behave like a gaming brand or a jeans brand. We had
to find a voice for Frooti that was well within its values and yet so cool and contemporary that
people in their head said, ‘wow I didn’t look at Frooti like that’ and not ‘that isn’t Frooti.”

The idea that was eventually settled on was ‘Why grow up’ which, according to Kurup, “sets the
stage for a 10-year strategy. It is sharp and is in keeping with the contemporary values of what a
mango drink can embody. It is extremely youthful.”The new look of Frooti includes a new
identity and new packaging. From the new identity, the logo has been carefully tweaked to look a
little more contemporary. The packaging is brighter, cleaner and has a new visual identity. The
new Frooti has been launched with three new pack designs with three new Mangoticons (Mango
Emoticons). Parle Agro will launch 25 Mangoticons in the market by next season.The campaign
will involve various media – conventional and alternate – including the Internet, social media,
ambient installations, in premise stunts and spectaculars. The focus will be on user-generated
content. Kurup’s final thoughts were, “The ‘Why grow up’ strategy will constantly reinvent itself
over the years and promises to bring in cutting edge communication year after year on the brand.
However, apart from the youth and external market, Creativeland is also creating internal
communication in the form of workshops to brand partners, media agency, sales, etc., as this is a
completely new way of thinking on Frooti for years to come.

COMPETITION

By targeting the youth, 'Frooti' would be in direct competition with the Cola MNCs (Pepsi and
Coca-Cola) which were immensely popular, not to mention other tetrapak fruit drinks and all the
other beverages targeted at the youth.According to the company’s director Nadia Chauhan, the
biggest challenge right now for the company is to expand distribution reach from 10 lakh outlets
to 40 lakh outlets soon.“Beverages is our largest revenue-earner right now. So, we are looking at
entering high volume-driving beverages categories. The challenge is also to expand our
distribution reach from 10 lakh outlets now to 40 lakh outlets soon,” Chauhan said.“Much of our
growth will also come from our water brand ‘Bailley’. We intend to have a total of 60-65 water
factories by end of this year, up from around 32 right now. We need more factories so that each
can be situated closer to the market as this reduces transportation costs and makes the business
more price competitive. Also, our confectionary business is very new and we have a number of
launches lined up, which will also contribute to our overall growth,” Chauhan added. The
company recently launched brands LMN (nimboo pani) and Saint Juice, to cash in on the
summer season.“Another way to push sales is through consumer activities and promotions. So,
we are redoing the graphics for our Frooti brand,” Chauhan informed. This summer, Frooti will
undergo a complete makeover and will sport different graphics on tetrapacks and PET bottles.

Future perspective

Mumbai: : In a strategic move, the Rs 400-crore Parle Agro Private Ltd has kicked off a new
retail initiative called ‘retailer relationship building programme’ (RRP). While Parle Agro is
focusing on retailer relationship programmes, Rasna Private Ltd is working on developing new
products, brand expansions and line extensions as part of its future plans. On Parle Agro’s new
initiative, says Mr Prakash Chauhan, chairman and managing director, Parle Agro: “This
monsoon, we have put into action a retailer relationship building programme. As per the new
initiative, our retailers are now visiting Parle’s plants where Frooti, Bailey and N-Joi are
manufactured across the nation.” At present, the company has over 10 lakh retailers across the
nation. In addition to the new initiatives, the company is also getting ready to foray into the
healthcare segment by launching ‘Parle Bailey Digestive Water’ very soon. “During the
monsoon, we will be talking to our retailers not to our consumers—for a change. This monsoon,
our focus is clearly on building relationship with our retailers,” adds Mr Chauhan. Meanwhile,
the Rs 200-crore Rasna Private Ltd, is getting ready to foray into the food segment this year.
Says Mr Pirus Khambatta, chairman & managing director of Rasna Private Ltd: “Yes. We are
working on developing some modern generation food products. Also, we are developing new
variants, flavours and products this year.”