Frooti

steps of midm:

1) historical perspective

2) offer

3) financial statistics

4)usp/ubp- unique selling proposition and unique buying

proposition

5) topic

6) competition

7) future perspective

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.”
Future
Mumbai: : In a significant move, the Rs 600 crore Parle Agro Private Ltd is planning to
introduce its flagship brand Frooti in Pet bottles across the nation. As a part of its expansion
plans, the company will be setting up nine plants at franchisee-owned locations across the
country to produce ‘hotfill food grade’ Pet Bottles for Frooti. At present, the company has nine
plants to manufacture tetrapacks for Frooti.
Elaborating on Parle Agro’s new initiatives, chairman and managing director Prakash Chauhan,
said,‘‘Today, Pet bottles are in great demand as it’s a convenient form to carry fruit drinks. In
1985, we launched Frooti in tetrapacks and we are now offering it in Pet bottles to meet the
growing needs of consumers. In fact, Frooti is the only mango drink which is available in Pet
bottles across the nation.’’
Prior to the formal launch, Parle Agro had carried out national level ‘Simulated Test Marketing
(STM)’ to evaluate the acceptance level of the new packaging. ‘‘These initiative was targeted at
diverse age groups. We also test marketed our new packaging initiative in Pune before
introdcuing Frooti in Pet bottles-to gauge the reaction of consumers there,’’ he adds.
As for the rationale behind the new move Mr Chauhan says,‘‘Earlier the market was not ready
for mango drink in Pet bottles. But times have changed now. With this move, we are offering a
convenient package for the youth segment.’’ To announce the launch of Frooti in Pet bottles, the
company is planning to launch a multi-media ad campaign designed by Everest Intergaed
Communications.
In a bid to take on rival brands, Parle Agro is also drawing up an ambitious game plan which
includes major expansion drives, strategies for growth, new product launches, research and
development initiatives, extension of its distribution networks, renewed thrust on exports,
marketing and advertising plans, says Mr Chauhan.
In other marketing moves aimed at the summer months, Parle Agro is also in the process of
launching ‘Appy Nector’ across the nation ‘in a bid to meet the varied needs of consumers.’
According to Ms Schauna Chauhan, the 26-year-old director of Parle Agro, the nectar market,
which is still in a nascent stage in India, seems to have great potential for growth.‘‘Appy Nector
is a healthy and tasteful substitute to its alcoholic look-alikes. With a mellow taste Appy
becomes an ideal accompaniment at social dos where the discerning consumer wants to avoid
alcohol. We see Appy as not just...
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.

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Excerptsrooti' faltering?
Web
'Frooti' was launched by Parle Agro in 1984. It was the first
pub-3085938629 tetrapak drink to be introduced in the Indian market. By
2000, Frooti had a majority market share of the Rs. 300
1 crore tetrapak fruit drink market. However analysts felt
that this 16-year-old brand had been losing its appeal over
ISO-8859-1 the years.

The brand, which scored a 100

ISO-8859-1
on product likability and
quality and a 95 on product
GALT:#008000;G recall, had dropped in the top-
of-the-mind ranking to 60,
en from 95 two years ago.

The sales of 'Frooti' also had

Bottom of Form
dropped over the years. The
situation worsened with the
increase in competition.

In addition to the threat it

faced from soft drinks
marketers, Frooti' witnessed
heightened competition in its
own segment tetrapak fruit
drinks and juices. With
pressure mounting from all
 sides, Parle Agro was forced to
rethink its strategy...
Campaign Tale
The youth segment, which 'Frooti' targeted, was extremely
difficult to break into partly because of the perception that
'Frooti' was a kids drink and partly because of the hold that
competitors had already established over the market.

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.

The relaunch strategy for

'Frooti' therefore focussed on
the one hand on breaking the
image which the youth
associated 'Frooti' with and on
the other on convincing the
youth that it was a better
alternative than the colas.

Said, Prakash Chauhan, MD,

Parle, “For some reason, a soft
drink in tetrapak is perceived
as one meant for children...

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.”
With the onset of monsoon, the consumption levels of soft and fruit drinks will go down
compared to the summers. How do these companies then plan to promote their sales during this
season? According to Mr Khambatta, the company is looking at positioning Rasna as ‘an all-
season drink’. “Even in monsoon, consumers can use our products. For instance, you can add our
concentrates to milk to prepare fruit drinks. Our new launch ‘Fruit Booster’ can be used anytime.
During summers, we registered a growth rate of 30 to 40 per cent this year with effective
marketing plans,” adds Mr Khambatta.
Even as Rasna Ltd gets ready to enter new categories, Parle Agro is also stepping up its R&D
initiatives to roll out new products in the Indian marketplace. In addition to a slew of new
products, Parle Aggro is also planning to set up manufacturing base in Sri Lanka and Bangladesh
soon.
Meanwhile, in an effort to gain a competitive edge over rival brands, Rasna is also beefing up its
distribution network. To support its mass media advertising, the company is now...
Latest news or future plan
Parle Agro, the Rs 950 crore FMCG company with brands like ‘Bailley’ and ‘Frooti’, is aiming
at a turnover of Rs 3,500 crore by 2011, led by more manufacturing units closer to the market to
cut down on transportation costs, as well as launch of new products and marketing thrust for its
beverages and confectionary brands.

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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.
“The youth loves to use emoticons like smileys in their communication on the mobile, e-mails
and chats. So we have combined the ‘fun’ part of mango with the emerging trends in the lives of
our consumers and created ‘Mangoticons’. Right now, we have devil packs, heart pack, mango
head-phones. Going forward, we will involve consumers to tell us what other graphics they want
to see on Frooti packs. These will be incorporated so that the new Frooti can serve as a point of
conversation and a communication medium in itself,” Chauhan informed.
Ahead of the summer season, Parle Agro is also gearing up to launch a marketing campaign that
will look at repositioning its mango drink Frooti as a contemporary youthful brand. Creativeland
Asia (CLA) has worked on the repositioning exercise which will see Frooti in a repackaged look.
CLA is also the agency behind Frooti’s upcoming ad film which revolves around the concept of
“Why Grow Up?”
“We did not hike prices of our products for the last 8-10 years because of the volumes in sales
we achieved which helped us stay profitable. But now, even after the drop in raw material prices,
we had to increase prices of ‘Frooti - one of our faster selling brands - to Rs 12 for 200 ml, which
was Rs 10 earlier. While the recent drop in raw material prices have been an enabler, our
margins are still under pressure due to several other costs, like operational expenses which has
peaked year on year,” Chauhan added.

Parle joins snacks war, launches Hippo munchies

By Priyanka Dasgupta Brahma Jun 23 2009 , Mumbai
Tags: Hippo munchies, Launches, Parle, Companies

The baked foods segment is suddenly becoming the battleground for the big foods companies.
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growing health consciousness of Indian fold
consumers.

Nadia Chauhan, joint managing director and chief marketing officer, Parle Agro, said, “We entered the foods segment
in 2007 with confectionery. With Hippo, our aim is to diversify further by adding snacks to our portfolio. This is a
significant step for us as we move closer towards being a complete foods and beverages player.” The Indian branded
snacks market is valued at over Rs. 6,500 crore and is growing at an annual rate of 25 per cent.

“The margins are higher in the snacks category. The companies are increasingly looking at driving higher margins by
addressing the growing awareness among consumers to consume healthy snacks” said Nilanjan Dey, director,
Wishlist Capital Advisors.

Marico, the maker of Parachute, recently launched Saffola Zest a baked snack positioned on the health platform in a
couple of flavours. Hippo is a baked snack made of wheat and comes in five flavours, as compared with three
flavours for Frito-Lay’s Aliva.

Each variant will be initially available in packs of Rs 5 and Rs 10.

“We are planning to launch Hippo in more stock keeping units to increase penetration and serve different
consumption needs” Chauhan said.

The new brand is at present being manufactured at Parle Agro’s plant in Vatwa, Gujarat. The company also plans to
make investments to increase its manufacturing capacity, distribution network and market infrastructure. Hippo will be
distributed through the company’s existing distribution network for confectionery, which was created keeping in mind
the entry into the snacks category.

Frito-Lay India’s launch of Aliva is being seen as a move conforming not only to the PepisCo’s portfolio
transformation strategy, but also as an attempt to capitalise on the growing Indian salty snacks and biscuits market.

A growing number of young, urban professionals, working women, nuclear families and changing lifestyles have led
to a significant rise in the demand for ready-to-eat snacks, say analysts.