INTERNATIONAL INSTITUTE OF PLANNING & MANAGEMENT,

NEW DELHI

SALES MANAGEMENT

COMPARATIVE SALES AND DISTRIBUTION

STRATEGY FOR TROPICANA AND REAL JUICE IN
NON METRO CITIES IN INDIA

Submitted by

NAME C. CHARAN KUMAR

BATCH PGP/FW/2008-10
SECTION F-3
PHONE NO. 09885354422, 99996000396
Sales Management

CONTENTS

Abstract 1

Introduction 2

Industry Profile 4

Major Players 13

Real Juice 17

Tropicana 20

Distribution 27

Promotion 29

Conclusion 31

Recommendations 33

Bibliography 34

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ABSTRACT
The study taken up by the comparative analysis of Corporate sales and
distribution strategy for Tropicana and real juice in non metro cities in
India.
Salesmanship is an art of demonstrating the merits of the goods and the
service of an organization to make a permanent customer. Salesmanship
is the art of understanding, appreciating and influencing other people for
mutual benefit. salesmanship is an effort to convince people to buy the
goods with benefit to themselves and reasonable profit to the seller.

Thus in totality I feel that these companies should review its sales and
distribution policy with much emphasis on making people aware about
the product and patching up the lacunae of distribution channel.

Therefore, the company wants to analyze the present market share of

Real Juice and analyze the reason for this particular market share of
itself and the competitor, so that, it can plan its future strategies. It also
wants to knows about the key reasons that prompt the customer to make
a purchase of packed fruit juice and Real Juice.

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INTRODUCTION

With attitude shifting towards health, hygiene and all things natural, the

fresh fruit juice market has suddenly gained ground. The challenge now

lies in making these juices part of daily household consumption. Brand

loyalty is diminishing as product differentiation is muted. It’s the

complete package that would clinch the deal for the respective

companies. A continuous stream of new corporate entrants, the sudden

health-conscious, natural fed Indian consumers are all contributing

towards bringing the juice industry to the fore. Much is happening and

more is due to happen in course of time. Any attempt to ignore this

industry and the activity involving it would be quite futile.

This project, therefore, attempts to delve into the many facets of this

industry – the industry at large, its major players and their respective

marketing strategies (remember, there is a struggle for existence and the

survival of the fittest: Darwin Theory), the analysis of the same and of

course, the consumers’ opinions. The project does not claim to be a

research product on the subject chosen, but its does pretend a humble

attempt at analysing the marketing environment as also the marketing

mix for the packed fresh juices industry.

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INDUSTRY PROFILE

In 1997, the Indian food market was placed at Rs. 2,75,000 crores, three

quarters of which was fresh food, 15% semiprocessed, and just a tenth

processed. In terms of volume, processed food accounts for just 2% of

the total output. Today time pressured unitary families ensure that the

food-processing sector grows at a phenomenal rate. The demand is ever

increasing and the supply is constantly evolving new market players. In

Others
Clothing and 13%
footwear
10%

Rent, fuel & power Food & beverages

10% 54%

Transport &
Communication
13%

fact, the research study indicates that most of the money flowing out of

an individual’s purse is spent on food and beverages.

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BREAK-UP OF PER CAPITA SPEND

Processed food being tokened as convenient and hygienic almost-ready

meals offer a lucrative market especially in the much growing and talked

about beverages sector. Beverages constitute all of cold drinks like Coke

& Pepsi, hot beverages like tea, coffee and milkfood drinks, squashes and

syrups, mineral water, tetrapack drinks. Share of each being:

Softdrink
concentrates
Tetrapacks 1%
6%

Cold drinks
49%

Hot beverages
40%

Mineral w ater Squashes &

2% Syrups
2%

Hot beverages include tea, coffee and milkfood drinks

Even as the two soft drinks stalwarts – Coca-Cola and Pepsi – are

slugging it out, Rs. 400 crores tetrapack market is abuzz with activity.

Frooti, the pioneer in the tetrapack market of India began the trend for

fruit drinks. It continues to be the leader with Jumpin, Real and Onjus

following it.

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Rest
10%
Godrej Foods
20%

Parle Agro
70%

ParleAgro includes Frooti, Appy, Pingo

Godrej Foods constitutes Jumpin
Rest include Treetop, Volfruit, Onjus, Real etc.

Tetrapacks which account for 10% of the total Rs. 4000 crores drink

market have been growing at the rate of 20%. It is divided into three

segments viz., Fruit Drinks, Juices and Nectars. According to the

stipulations by the Government FPO Act, all products containing fruit

content less than 20% of total product should be branded as ‘fruit drink’;

in the case of oranges, the stipulation is upto 40% of the total content to

qualify as a ‘fruit drink’. Fruit content of more than 20% but less than

Others
13%

Orange
Mango
28%
59%

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85% qualifies for the tag of ‘nectar’; in the case of oranges it has to be

more than 40% and less than 85%. And finally, to qualify for the tag of

‘fruit juice’, the fruit content has to be more than 85%. Going by this

qualification, the bulk of the products in the market fall in the ‘fruit

drink’ category, with a few in the ‘nectar’ range and still fewer in the ‘fruit

juice’ range. Apart from Parle Agro’s Frooti, Appy, Pingo, Godrej Food’s

Jumpin, Lipton India’s Treetop; popular brands such as the Rasna range

and Kissan squashes fall in the fruit drink category. Pepsi’s Slice

(mango), canned juice segment comprising of brands like NAFED, Noga,

Midland, Mohan Meakin’s God Coin and Druk qualify as fruit nectars.

However, ETLs Onjus (34% market share) and Dabur India’s Real quality

to be the major contenders in the fruit juice market. The flavours as

preferred are:

Others include Pineapple, Apple, Litchi, Guava & Mixed etc.

Fruit juices are not really an integral part of the typical Indian’s diet.

This thought curtailed a major opportunity in the beverages sector till

about a couple of years ago. New thinking dawned and suddenly a fresh

lease of life was granted to the beverages market, thanks to the fruit

juices.

Hence the project concentrates on fruit concentrates…

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Hard War of Soft Drinks

With the change in the lifestyle of people and modernization getting in

vogue, Nepali market place has became a battlefield for various beverage

brands. As the weather now is hot and humid, the war seems to be more

intense among soft drinks.

For the last one year or so, Pepsi has been very aggressive. Pepsi’s

bottling company here installed pet bottle plant early February 2000

investing one hundred million rupees for it and introduced some of its

brands in 1.5 liter and 500 ml pet bottles. Then it introduced 200 ml

Phuchhe Pepsi at the right time and the product is doing well in the

market. As a result, its earlier market share of 18 percent has gone up

by another 4 percentage points to some 22%. Phuchhe Pepsi has also

helped in expansion of the market volume of soft drinks.

Till few months ago, ‘Frooti’ was enjoying the advantage of being the only

fruit drink in the market without any competitor. Now with the entry of

‘Rio’ from Gold Beverages (P) Ltd. of Chaudhary Group, ‘Real’ from Dabur

Nepal and ‘Frujo’ from Raybot Beverages, ‘Frooti’ from Dugar Beverages

(P) Ltd. has lost its past privilege. Only recently, ‘Pran’ brand of orange

juice has been launched by importing it from Bangladesh. Therefore, now

Dugar Beverages started providing two extra packs of Frooti on the

purchase of every tray. The company has also started to provide credit to

its wholesalers and retailers, which was unimaginable till the recent

past. And it has changed its slogan which says "Juice up your life" from

the earlier "Mango Frooti, Fresh ‘n Juicy". It had also changed Frooti’s

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old TV commercial which had been on air since last one decade or so. TV

viewers bored of watching the same commercial year after year have felt

some change.

As a result of the new developments, companies are working hard to gain

more market share, be it through advertising, merchandizing or

consumer schemes. Dabur Nepal has reduced the price of its ‘Real’ juice

from Rs. 19 to Rs. 14 to make it more competitive. Though it is still one

rupee higher than Frujo, two rupees higher than Frooti and Rio, and

three rupees higher than ‘Slice’ of Pepsi, Real has 50 ml more than all

the competing brands except Frujo. The company has said that the

reduced price offer is only for Real Orange Juice and is valid only till the

stocks last.

The fruit drink market in Nepal is highly segmented quality-wise as well

as market-wise. But general consumers are seen to regard them all as

equal in quality. Quality-wise consumers can get essence based so called

fruit drinks like Popayee at Rs. 6 or even lower as well as other brands

for as high as Rs. 45 for 250 ml. Claimed to be the only carbonated soft

drink with fruit juice flavour in Nepal, Frujo has one other advantage

over all other brands, i.e. it is packed in a ‘see through’ pet bottle. Rest of

the fruit drinks are in Tetra Pack except Pepsi’s ‘Slice’, which is in glass

bottle and is not carbonated.

Content-wise too these fruit drink brands have a lot of differences. Most

of them are mango-based. But, Dabur’s ‘Real’ is in orange and pineapple.

It is also said to be 100% pure juice (40% pulp content) with no

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preservatives added. Other fruit drinks like Slice, Frooti and Rio are said

to be nectar based (see box for required contents of different categories of

beverages). "These brands are synthetic drinks, not real juice as Real",

says T.K. Gupta, General Manager of Dabur Nepal. But most of the

general consumers do not know or don’t care to know about the

contents. They regard all these brands to be real fruit juice.

The fruit drink market has grown by almost 30% this year, according to

estimates by the companies. The growth is also there for carbonated

drinks as people, especially of the new generation, go for it. However,it is

estimated that carbonated drinks market is growing slower - between 10

and 15 percent a year. "With the entry of Rio, the total market for fruit

drink has now tremendously gone up", says Manoj Loya, General

Manager of Gold Beverages (P) Ltd. of Chaudhary Group that owns the

brand. But the interesting thing is that after the Phuchhe Pepsi was

launched in the market it snatched away some of the market of

carbonated drinks (including that of its own big brother 300 ml. Pepsi)

and also that of fruit drinks like Frooti and Rio, though Real was not so

affected because of its premiumness. Phuchhe Pepsi has become popular

among school kids who otherwise used to have Frooti and would have

gone for other fruit drinks as well. "Almost 50% of such school kids have

shifted from fruit drinks to Phuchhe Pepsi", says a fruit drink company

executive in frustration. The reason is that Phuchhe Pepsi is five rupees

cheaper than other carbonated or fruit drinks. This shows how Phuchhe

Pepsi has helped to increase the volume of carbonated drinks industry.

Even those who had no habit of consuming carbonated drinks have

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started to consume cola thanks to Phuchhe Pepsi. In small shops,

instead of offering a cup of tea, which generally costs five rupees, people

now offer Phuchhe Pepsi to friends, because it is only two rupees costlier

and gives a better image.

In the race for catching a respectable market share of the growing soft

drink market of Nepal, there are imported soft drinks as well, which

range from different fruit juices to canned cola. The fruit drinks are

imported from as far away places as Philippines, USA, Singapore and

Thailand as well as from the nearby markets of India and more recently,

from Bangladesh. They are in Tetra Packs, in cans, in pet bottles, and in

plastic jars. In taste they are in mango, orange, apple, tomato, mixed

juices and in many flavours containing nectar, 15 percent to 40 percent

fruit pulp or 100% natural juice. Though sales volume of imported juices

has no record at all, estimation shows that about 20 MT of fruit juice

(that includes imports in various packaging) is sold in Nepal every year.

That gives a market share of less than 1%. Sales of canned cola and

tonic water are more difficult to estimate as these items are imported

from many countries like China, Hong Kong, Singapore etc. RNAC and

Necon air also import these products for their in-flight service.

Since Coke entered Nepal in 1979 it has been enjoying market leadership

in soft drink industry. Pepsi came to Nepal only in 1986. Being a late

entrant, Pepsi has been trailing far behind Coke. Pepsi could have

expanded its market share, but the bottling company of Pepsi in Nepal

had frequent changes in ownership and management. Similarly, trying to

take all responsibility for sales and distribution directly and lacking

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enough advertising and promotional campaigns, initially the company

could not attract more consumers to its brands. Even some very

successful promotional campaigns in past could not sustain the

increased demand because of limitation in production capacity. In recent

times the company seems to be more serious. Its marketing has become

more aggressive. But that is not going to be enough as yet, since its rival

is far stronger in many respects. For example, Pepsi’s installed bottling

capacity here is only 2,250,000 cases per year and that was achieved

only after the commissioning of the pet bottling line about six months

ago. Of this capacity, the company has been able to sell only about

1,200,000 cases a year whereas Coke’s sales volume is estimated at over

4,300,000 cases a year. Similarly, Pepsi has no production facility in the

terai region, but Coke does. Because of this the distribution cost of Pepsi

is higher, and quick response to increased demand in some market

places is difficult. Still, Pepsi has chances of high growth provided it

strengthens its distribution and sales and marketing team. This will

further help Nepal’s soft drink market to grow.

Market-wise, in Kathmandu valley one finds growth both in the absolute

quantities consumed and in the varieties available. But outside the valley

the situation is not so bright. On the one hand, almost 50 percent of fruit

drink sales is said to be within Kathmandu valley alone, on the other

hand brands like ‘Real’ and ‘Frujo’ are not available yet outside the

valley. Even the remaining brands like ‘Slice’ and ‘Rio’ are yet to

penetrate some markets.

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Fruit drinks market is not yet mature enough as that of cola, as the

estimated growth rates for these products indicate. Consumption of any

product depends on the country’s overall economic condition and also on

the habit of the consumers. In the case of soft drinks, Nepali consumers

are more used to cola than to fruit drinks. The reasons are numerous.

One is the price. Fruit drinks are one to four or five rupees costlier than

colas. Second, consumers seem to feel more comfortable with cola than

fruit drinks, because rumors of foreign objects found are more frequent

in packed fruit juices than in colas irrespective of the veracity of such

rumors.

Whatever the perception of consumers at present, there are still very

good opportunities for soft drinks especially fruit drinks industry to

expand in Nepal, because the average per capita consumption here of

non-alcoholic beverages is considered to be still very low. And if the

manufacturers of fruit drinks become aware of the tastes and pockets of

the consumers and maintain quality and availability of their products,

there is a very good chance of high growth in the volume however tough

the competition may be. Fruit drinks also have one more advantage over

cola, as the former can use the locally produced fruits whereas colas are

mainly concentrates that are imported. While the opponents of

consumerism may find strong logic against colas, they may be supportive

of fruit drinks. However, it is also a bitter fact that fruit juices produced

in Nepal are mostly from fruits that are imported. Perhaps it is because

the industry is still not grown up enough to encourage sufficient fruit

production on commercial basis.

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MAJOR PLAYERS

In India, the rising income levels have changed the consumption

pattern of the rich as well as not so rich. At one level, the lower end

of the middle class is busy emulating the eating habits of the rich

by laying greater stress on nourishment and quality while at the

other level, as choices increase, the upper end consumer is getting

more and more adventurous and experimenting his meal portfolio.

In processed food sector, the inclination towards fruit juices rather

than food drinks mark the constant change in habits, attitudes and

needs in the country in the past couple of years. While the food

drinks market is growing at 10%, in comparison the growth rate of

juices and nectar sector is phenomenal 30%(Source: Mckinsey

Report). The reasons for changing trend are not really hard to find.

People at large, today, are definitely more health and quality

conscious. They are looking for additional attributes (natural,

nutrition etc.) in thirst-quenchers.

This, therefore, makes it imperative to give the Rs.2000 crore fruit

juice industry a closer inspection. The natural juices at the

roadside juicewallahs could never give consumers the full

satisfaction of assured quality and hygiene. The only other

alternative was extracting juice pulp at home, which in itself is a

cumbersome process. Thus, was identified the need and hence the

market for Natural Fruit Juices.

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An analysis of the players who call the shots…

ENKAY TEXOFOODS INDUSTRIES LTD.

Brands : Onjus, Life

Turnover : Rs.67 crores

For a traditional family run texturised yarn business, it was quite a giant

leap for Enkay to diversify into a completely unrelated - food processing –

business in the FMCG segment. ETL with know how from Henschel

Export GmbH of Germany, a Thyssen group company, set up a plant to

process guavas, mangoes and bananas into puree, concentrate and later

to juices. ETL is a company of international repute having ISO 9002

certification and supplying processed fruits and pulps to companies like

Heinz, Pepsi, Nestle, Unilever, etc.

Launched in April 1997, Onjus, in its very first year commanded an

astounding 34% market share in the tetrapack juices segment. Rs.15

crores sales were amounted from Mumbai and Pune alone, its first

launch centres. With the help of Samsika Marketing Consultants, the

consultancy outfit advising Enkay Texofoods, Onjus today commands a

sales figure of Rs.20 crores.

Onjus is the most successful brand of 1999 (Source : Business India).

And, this has encouraged the company to launch their second product,

Life, a mango-based beverage.

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EXCELCIA FOODS LTD.

Brands : Real, Hommade, Capsico, Lemoneez

Turnover : Rs.10 crores

An equal equity joint-venture between Dabur India and Osem of Italy,

Excelcia Foods Ltd. is only about a year old. Its flagship company Dabur

India currently accounts Rs.810 crores turnover. It has eight business

divisions viz, Health Care, Personal Care, Pharmaceutical, Ayurvedic,

Bulk Drugs, Natural Gums, Food and Cosmetics.

Launched in June1996, Real went off-shelves for almost four months

owing to quality problems (stock returns of around 30%). Earlier Real

was being sourced from Himalayan Beverages, a Nepalese company. For

better control over supply, Dabur Nepal, a 100% Dabur India subsidiary

took over Himalayan Beverages. Dabur has also got into a contract with

the Himachal Pradesh government to use its packaging facilities for an

annual fee. In August 1998, Dabur India tied up with Godrej Foods for

the manufacture and packaging of its Real range of fruit juices in

tetrapacks.

Despite a headstart, Real failed to create a market of its own, let alone

capture the market of tetrapacks like Frooti.

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REAL JUICE

More wholesome than fizzy drinks and moro hygienic than what roadside

vendors sell, to reteriete the launch spiel. Real Juice is sold through

80,000 retail outlets in 240 cities of India. The brand name to the

product is assigned as synonym for naturally, as Real Juice contains

only fruit pulp and no other added flavour or colour.

Known for its packaged, preservative free fruit juices, Dabur Foods has

launched India’s 1st Cranberry juice – Real Cranberry Nectar in one-litre

packs for Rs 75 in the Indian fruit juice segment.

The juice- Real Cranberry- offers the exotic

flavour and nutritive value of cranberries, rich
in vitamins, minerals and antioxidants, which
makes it a healthy beverage, claims an official
release.

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The product will be offered in four metros - Delhi + NCR, Mumbai,

Kolkata and Chennai, mini-metros like Bangalore, Hyderabad, Pune,
Ahmedabad, Chandigarh and small cities like Ludhiana, Amritsar and
Jalandhar.

The release claims that Dabur Foods’ flagship brand, Real offers the
largest range of fruit juices, which are an assortment of traditional
Indian and International flavours – orange, mango, tomato, pineapple,
mixed fruit, grape, guava, litchi and cranberry.

Real Fruit Juice is a packaged, 100 per cent preservative free fruit juice
brand offering consumers the great taste and wholesome nutrition of
freshly squeezed juice in a hygienic and attractive pack. The product is
packaged in latest spin cap tetra pack, cold fill technology and spill-proof
double seal cap for packaging.

Real Fruit Juice is India’s first and only packaged Fruit Juice brand to
get SGS (Societe Generale de Surveillance) certifications for high safety
standards used in packaging that conform to the stringent HACCP and
GMP standards. The brand has also won the award for ‘Highest sales
growth achieved by a brand’ in the non-dairy category, at the sixth
National dairy and Beverage Seminar – ‘Innovation for Growth’.

Today Real Juice marks it's presence in the market with eight flavours-
Mango, Orange, Pine Apple, Mix and, Tomato.

Real Juice is available in four packings of 200 ml, 250 ml., 500ml. and
one litre with process ranging from Rs, 8.00 to Rs. 55.00 Real Juice is a
fresh, natural flavoured, squeezed from the choicest fruits, specially
hand-picked from the finest orchards in Nepal. They do not contain any
added flavour, or colour and come in India's first international freshness
sealed pour and store packs.

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PRODUCT PORTFOLIO
ORANGE JUICE

MANGO

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MIXED FRUIT JUICE

GRAPE JUICE

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TROPICANA
Tropicana works with more than 400 established Florida groves, which
are selected for sandy soil conditions and advanced irrigation practices.

The company is the largest single buyer of Florida fruit and processes
about 60 million boxes of fruit. Once the fruit is picked, oranges are

hand graded and any fruit that doesn’t meet quality inspections is
removed.

The oranges are then washed and the orange oil is extracted from the
peel to capture the from-the-orange taste, which are later blended into

the juice for consistent quality and flavor. The oranges are squeezed and
the fresh juice is flash pasteurized. Tropicana developed flash

pasteurization to minimize the time the orange juice is exposed to heat

while providing maximum nutrition and flavor.

Oranges have a limited growing season, and because there is demand for
juice year round, an unspecified quantity of juice (some or potentially all)

is deaerated and then stored for future packaging in chilled tanks to

preserve quality. The aseptic tanks protect the juice from oxygen and

light and hold the liquid at optimal temperatures just above freezing to
maintain nutrition. It has been reported that deaerated juice no longer

tastes like oranges, and must be supplemented with flavor packs derived
from orange oils before consumption . Tropicana also uses small

quantities of high-quality orange juice from Brazil to supplement the

Florida crop.

The oranges Tropicana uses for its juices have different ripening seasons
and juice stored in aseptic tanks has been stripped of its taste – so some

stored juice is blended with fresh juice and a bit of the natural oils found
in the orange peel and in the juice are blended in to deliver the most

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consistent tasting juice. Pulp may be blended in at this point, too,

depending on the product.

Tropicana’s carton and plastic packaging are engineered to maintain

quality and freshness. The company’s packaging materials ensure the

juice stays fresh inside the package by preventing outside moisture and

light from affecting its quality.

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4 Ps OF MARKETING
PRODUCT

The Facts:

Tropicana is a ‘100% natural orange juice’ in a tetrapack. It is made

from American Valencia oranges. The company claims that it tastes like
fresh orange and has a shelf life of six months; even an open pack can be

safely refrigerated for 3-4 days. Also that the product contains no
preservatives and is unsweetened. Unlike in the West where most

orange juice brands are yellow in colour, Indians perceive yellow as being
prineapple or sweetlime. At Onjus, to cut possible confusion, oranges of

right colour and taste were picked. Onjus is available in two sizes – 250
ml and 1 litre. Recently it introduced a special ‘six pack’ consisting of six

250 ml packs.

The Real range of juices includes orange, apple, mango, pineapple and

mixed juices, as well as its vegetable variant, tomato. The product

contains no preservatives. It is available in both sweetened and

unsweetened form. Real fruit juices were available and packed in Nepal
in 500 ml and 1litre elopack. Only its apple juice was available in small

tetrapcks. To overcome this hinderance, Dabur India has tied up with

Godrej Foods which will pack the Real range of juices in small 200 ml

tetrapacks.

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The Findings:

In terms of variety and flavours, Onjus can only boast of a single one –
orange. This in itself is a major drawback for the brand since it is pitched

against Real’s multiflavour variety. Also, Indians are known to have a

sweet tooth. However, Onjus unlike Real does not provide a sweetened

juice flavour. Real, keeping this in mind has ventured into both the
variety, the naturally sweet and the other artificially sweetened; a big

plus for the Real brand. Much as both the brands refer themselves to as
completely natural, recently there were allegations of presence of

synthetic food colour dyes (above the permitted level). Though these
allegations were pinned at Onjus; it however highlights the urgency of

implementing stringent quality measures with regard juices. Steps also

need to be taken to ensure good juice quality after packaging. Perhaps

keeping this in view Real introduced ‘elopacks’. One big major drawback
against Real is the absence of small pack sizes. It is only available in

500ml and bigger packs, making it less convenient for individual

consumption (Pick it up and have it).

Barring these differences, both the brands do not offer much in

difference. The contrast in sales figure between Onjus and Real therefore

seems much to be influenced by the other factors.

The other factors??

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PRICE

The Facts:

Prices in Rs.

BRAND FLAVOUR QUANTITY

200ml 250ml 500ml 1ltr.
Tropicana Orange - 12 - 44
Orange
(Sweetened
- - 23 42
)
Orange
(Unsweete
- - 30 -
ned)
Real
Mango - - 30 -
Pineapple - - 30 -
Apple 9 - - -
Mixed - - 30 -
Tomato - - 25 -

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The Findings:

Inorder to create a market for Onjus, the key issue was to make it

affordable. Since it was fighting its battle not just against its predecessor

Real but also against the established Frooti etc., the price had to be in a

competitive range. Onjus was sensitively priced similar to 250ml Yo

Frooti packs. The introductory price of Rs. 9 per 250 ml pack was safely

within 10 Rs. , mental price barrier. The purpose of it being to establish

or even to create a market for its products.

Real, the multiflavoured brands, has put its different flavours under

different price tags keeping in mind the preferred taste of the Indian

consumer. Infact even the sweetened and the unsweetened orange juice

variety are priced differently. However, since Real is not available in

smaller packs the indian consumer has a mental block towards Real’s

prices.

Though not much different in prices, Onjus scores an edge over Real

since it can boast of economical packs available in small sizes. Taking

into account the price sensitivity of Indian consumer, Real launched its

festive carton of four 500ml packs (2 oranges, 1 mixed and 1 tomato)

priced at Rs. 90. On its part Onjus came out with a carton of six 250ml

packs with a slashed price tag of Rs. 57. Both the companies believe that

once the consumer try the brands at slashed prices, the brands would

gain peak sales year after year. However, both the companies fail to

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understand the simple truth that consumers in general are no longer

brand loyal and are always hunting for ‘value for money’. Inorder to steal

the show from aerated, non-alchoholic food drinks, it is imperative that

the companies try and increase profits by increasing sales volume and

reaching economies of scale and not by increasing price tags.

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DISTRIBUTION

The Facts:

Tropicana is aimed at teenagers, young kids, wives, mothers and busy

executives. For the sole purpose of in-house consumption, 1 litre Onjus

packs were introduced. As a company policy, distribution aspects is

given precedence over promotional ones. As a result the company spends

more on strengthening its distribution network rather than the

promotional aspect. The management has spared no effort in spreading

its distribution from roadside vendors, dhabawallahs, local grocery

shops and to super markets. Export offers a major potential for Onjus

fruit juices. Nepal and Bhutan are among the few neighbouring countries

to which Onjus is already being exported.

Unlike Tropicana, Real is sparsely available. Positioned as an up-

market brands, it is available mostly in mid-up market outlets. The

absence of small, convenient packs makes Real less discrete in on-

premises outlets like college canteens and roadside stores. Surprisingly,

the already existing distribution channels of Dabur India are not being

utilised by Real to reach the general masses. To make matters worse in-

transit damages to the packs during carton handling earned the brand a

bad name initially. Thus, distribtuion and logistics posed more of a

problem than a solution to this brand.

The Findings:

Though both Onjus and Real have done well to elaborate their consumer

segment from kids, teenagers to young adults and family people,

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surprisingly the sales haven’t risen exponentially. Not available makes

one more desirable but not in case of a product. In today’s buyer’s

market, if one brand is not available the second would conveniently

take its place. Product differenciation and eventually brand loyalty is

continuously diminishing in the competitive market of today. As a result

services especially as that of distribution and logistics gain crucial

importance. Inspite of an early launch, Real could not make its presence

felt owing to slack distribution network. The worse was that inspite of

being a Dabur brand, it failed to utilise the company’s existing

distribution channels to its advantage. Real thus got branded as a

premium product and lost a major chunk of its market share. Onjus on

the other hand made adequate shelf presence right from local shops to

the big malls, eventually sizing up a huge market for itself. However, to

its credit Real took note of its in-transit damages and came up with

‘elopack’.

Apart from getting its logistics right, Real would do well by not

restraining itself to the premium segment alone. Like its counterpart

Onjus, it needs to reach the popular segment, because it is they who

mark the substantial market.

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PROMOTION

The Facts:

Tropicana: ‘Squeeze to Please’

Onjus gives primary emphasis to print media as agianst the electronic

one. The product, and not the company brand is highlighted. Positioned

as a thirst-quencher, inorder to clinch greatger market share the

company is trying to promote Onjus not just as a beverage but also as

breakfast, meal compliment or a mix with vodka. The promotion never

fails to underplay the fact that they are made of the finest Valencia

oranges from America, posed as naturally rich in Vitamin C with no

preservatives. The company recently introduced a ‘six pack’ carton priced

at Rs. 57, to communicate it as that ideal for small families and/or as a

gift pack. Equipped with Rs. 1 crore advertising budget, the promotional

material for Onjus is meant for the ‘label literate’. The packs come with

tamper proof, hygienecally packed adjustable straws.

Real: ‘ Do you believe in real love? There’s nothing artificial about it’.

The essence of Real’s promotional work is ‘real’. To the upmarket

housewife, it is posed as a convenient pack full of nutritional value.

Though considered as a premium product, because of its price

competitiveness, it is being pitched against roadside juicewallahs.

‘Compeletely hygenic’ and ‘value for money’ are the messages being sent

across. Real, barring a few advertising spots, has not really advertised

much. But all this is set to change this year with an advertising budget

of about Rs. 1 crore. Strategy is being worked out with door-to-door

sales and sample promos. To add variety, Real now even comes in blue

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packs equipped with screw back-ups.

The Findings:

When a company faces stiff competition from the other, it is but

impossible for the company to disregard promotion. Advertising seems a

forelong marketing variable in the agenda of both Onjus and Real, a fact

admitted by both the companies. Especially on electronic media, the

companies have failed to leave a mark on the consumers. While

comparing the promotional efforts it is evident that Onjus is busy

projecting itself as young, enthusiastic, fun-loving product while Real

poses a much sedate, premium image. The packaging in itself speaks a

lot about the consumers being targetted by the respective companies.

There being negligible difference in both brand’s advertising budgets, yet

Onjus has made its presence felt as against Real. This is not simply due

to the presence of physical product itself but also because of its

promotional material, in the form of outdoors at every nook and corner.

Real has also been complacent with regards to point-of –purchase

displays, thereby killing the impulse buy decisions.

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CONCLUSION

Can a company whose business for decades has been spinning yarn

create a successful brand out of a fruit juice overnight ? Yes, would say

the patrons of Real. After 13 years of staying lonely at the top would Real

be able to build a crowd around Parle Agro’s Frooti. Well yes, and no.

Frooti is still unchallenged as a fruit drink. But what Real attempted

was to create a market of its own - the market of fresh fruit juices. This

low volume, high growth industry sprang into existence three years back

and yet the enormous growth potential it showed during this time has

enticed many new entrants - both Indian and foreign players . Much has

already been achieved and much is yet to be. The market is ever

expanding ; just that what marketers have been trying to sell earlier was

often peripheral to the basic Indian diet. As a result, these products

never got beyond the novelty sales level. What the Indian market needs

today - to get anywhere close to the consumers paradise - is at least a

dozen such marketers who would balance superior technology with

consumer needs; whichever part of the globe they originate from.

Price is a barrier to this category because when you give fresh juice,

packaging becomes critical. So, what the industry is now trying to do is

offer different packaging to suit different price points while

simultaneously working on ways to offer better quality and improved

taste.

With the market growing at a healthy rate and with changing lifestyles

and rising levels of health consciousness among consumers today, the

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demand for healthier products like packaged fruit juice is only going to

increase in the times to come.

Dabur will be a Rs 200-crore company by 2006-07. And a large chunk of

this growth will come from the Real brand of fruit juices, since Real

contributes as much as 85 per cent to the company's topline. It will

continue to be an area of focus.

It took Dabur Foods seven years to make money on fruit juices, thanks

to product innovation, expanding market and increased consumer

preference for healthy foods. But even as the industry players are upbeat

about growth prospects, there is an undercurrent of discomfiture, with

talk of the new government thinking of levying eight per cent excise on

food products including packaged fruit juice. So, while profit projections

are unlikely to go completely haywire just yet, there might have to be

some readjustments in the time frame within which these targets may be

achieved.

If everything goes the way it should, by the year 2007 the juice industry

would contribute as much if not more to the beverages industry as

aerated drinks today.

A fresh respite it would be ...

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RECOMMENDATIONS

 To promote the product range good consideration should be made to

wholesalers and retailers.

 To maintain the profit margin logistic mix should be adopted by the

company

 The price can be brought down by cutting the manufacturing cost.

 The distribution channel should be widened and made more cost-

effective.

 More advertisements be placed on TV and Radio.

 In order to attract more attention of potential customers any celebrity

can be endorsed.

 More flavour can be added to the product line.

 Some sales promotional campaigns may be undertaken involving

retailers and customers to push the product.

 More hoardings and OTC displays may be placed in order to increase

awareness level.

 Pack may be made more attractive.

 Consistency of the quality is necessary.

 More retailers and consumer based schemes should be introduced

and special emphasis should be given children based schemes,
because children mainly consume the fruit juices.

 As a researcher, I observed that for making the distribution channel

smooth transfer of goods, the contribution of middlemen is required.

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BIBLIOGRAPHY

Still, Cundiff, Govoni, Sales Management – Decisions, Strategies and Cases, 2006

Business Today, 15th September Issue, 2008.

 Economic Times

 The Strategist, Business Standard

 Financial Express

 Business Line

 Handbook of Analysis and Quality Control

 A&M

 www.indiatelevision.com

 www.daburfoods.com

 www.agencyfaqs.com

 www.domain-b.com

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