Business Research Method

Fruitzone India Limited

Presented by

Ishan Dhiman (MBA/07/202)

Aparna Jha (MBA/07/190)
Nikhil Joshi (MBA/07/217)
Siddhant Mohapatra (MBA/07/227)
Ankit Nag (MBA/07/188)
Manik Mittal (MBA/07/212)

Presented to
Prof. Aswathy Asokan
 Fruitzone India Limited Case Summary
Fruitzone was the leader in the Indian market in fruit juices, marketed under the brand name
Tropiviva. Hemant, the MD of Fruitzone, Preeti, the current marketing manager of snacks
divisions, has identified that the firm's market share has been constant at 6.6% for the past
five years. Through the business intelligence team's efforts, Hemant concluded that the firm
was required to broaden its portfolio and invest in-season offerings as well, with sugarcane
juice being a prominent candidate. They decided to entrust India Monitor International (IMI)
to conduct a market research study.
Problem Identification
Through initial discussions between IMI and Tropiviva marketing team defined the business
problem as: -
"Should FIL(Tropiviva) Launch sugarcane juice? If yes, what should be the marketing
mix for the launch?"
After some secondary research, IMI redefined the problem of finding people's willingness to
buy packaged sugarcane juice and, if yes, identifying the target segment, price dynamics,
customer expectations, packaging type, and preferred variants.
Research Outline
Phase- I
1. Secondary Research:
This consisted of collecting data through published industry reports and internal
marketing data from Fruitzone to identify the performance of Tropiviva's products
compared to its competitors and the demand of existing products. Based on these and
further research, IMI came up with lead questions to guide the focus group
discussions.

2. Primary data from Focus Group Discussions

3. Primary data from In-depth Interviews
Phase -II
Confirmatory Research: It was planned to conduct a detailed survey of potential
customers. If favourable, a test market simulation might also be done in one or two selected
cities.
Findings from the Project
Through the exploratory research, IMI was able to identify the following insights, which they
used to provide a detailed structured questionnaire and provided both to the Fruit zone team
so that they could move to the confirmatory research phase.
• Seen as a summers-only drink serving as a hydrating, coolant, and tasty drink
• For winters, taste alone as a strong attraction remains uncertain.
• However, offerings like ginger-flavour and fizzy-variants might be more in demand
during winters when the primary product sales are low
• Promotion of the purity of juice/connection with the relief from kiosk consumption
might work for elders.
• For children, taste variants might be the incentive as they are not essential health
conscious.
• Under the prominent brands, a good chance of being tried out by the brand-loyal
• Positioning based on place of origin, for example, Agra's Petha, is an alternative.
• Quite feasible as the sugar cane juice is not easy to make at home using juicers
• Preservability is hard to believe; in general, the impression is that it ferments very
quickly
• Additional preservatives are perceived as a threat to health and taste benefits; hence
positioning becomes important
• The need for sugarcane juice is much more in summers and very low in winters,
primarily because it is perceived as a hydrating drink with coolant effects and good
taste.
• In winter, people are reluctant to try it out.
• Positioning of the product should include convenience, easy to preserve (sugarcane
juice usually ferments after a particular time), and a refreshing drink with the taste of
freshly crushed cane.
• The juice can be sold throughout the year if positioned not just as a summer re
hydrant but as a cool drink to hang out with
• If we bring in flavoured sugarcane juice, we can charge a premium over regular plain
sugarcane juice
• Since coconut water is already available in bottles, we should be careful while
positioning our product so that consumers find something rare and unique in it for
them
• SKUs of tetra packs in small 100-200 ml can be sold along with the 500 ml big
rectangular tetra packs like other Tropiviva' or 'Real" fruit
Q1)Had the problem been appropriately defined?
Ans: Yes, the problem had been appropriately defined by the company.
Fruit zone India Limited plans to launch a new sugarcane juice in the market. Initially, Mr.
Hemant, MD of Fruit juice company, asked marketing manager MS. Preeti to have detailed
research on the industry so that they can decide onto whether they can launch the product or
not. MS. Preeti conducted a detailed survey regarding the same and benefits of sugarcane juice.
After that, the next task he assigned to the business intelligence unit , which was to give a
detailed report on sales and business of the beverage unit of their company as he wanted to
study whether he should proceed further or not. Later after analysing their information, they
consulted a market research consultancy company IMI to conduct market research for them.
The conclusion drawn by MR. Hemant was that there is an opportunity in the industry, and he
wishes to proceed with his plans of launching new sugarcane juice.

Q2.Critique the overall research plan prepared by India Monitor International.

Ans: The research was conducted in two phases: exploratory and confirmatory. The
exploratory research was conducted through secondary data analysis, focus group discussion,
and interviews.
For secondary research they used online resources such as newspapers, magazines and online
databases, which was good to understand the selling point of the existing flavours in the market.
Primary data was collected from the focus group discussions. Focus group consisted of people
who consumed packaged fruit juices regularly, and hence it gave a clear picture of consumer
preferences and their reasons of buying packaged fruit juice. It also helped us in understanding
some of the constraints that we might face in selling packaged sugarcane juice.
Primary data was also conducted by one on one interviews, through which we were able to
identify the value proposition of sugarcane juice and it’s public perception. It helped design
the survey to understand whether sugarcane juice can be marketed in winters or not.
Based on the data collected in the exploratory research a detailed survey was designed for
confirmatory research, and a market simulation was also designed in one of the cities.
Overall, the research plan prepared by India Monitor International was apt and covered all
bases.
Q3.Is the exploratory research plan prepared by IMI appropriate?
Ans: Due to limited infrastructure, storage facilities, and a largely disorganized market
dominated by roadside vendors, a major portion of the Indian fruit juice sector remains
untapped. Unorganized corner shops and roadside vendors continue to account for 90 percent
of juice sales. Customers in India, on the other hand, are increasingly opting for pre-packaged
fruit drinks. The main forces driving this trend are rising per capita disposable income and
rising health awareness. The outlook for the Indian fruit juice business was upbeat. As a
subtropical country with long summers, India has a big population that seeks comfort from the
heat in beverages such as cola, fruit juices, and so on. The market for packed fruit juices has
switched from cola beverages to packed fruit juices as people's health consciousness has grown.
In such a setting, juices that also have a cooling effect, such as lime and sugarcane, have a lot
of promise. Sugarcane supply has yet to catch up with demand, despite the fact that lime supply
is abundant in packaged form. People drink packed fruit juices with breakfast or lunch, during
gatherings, or as meal supplements, according to findings from focus group talks. For young
families with busy parents, packed juices for children and older family members are perceived
to be very clean and healthful, and the majority of consumption occurs at home for families
and with friends. Families purchased pre-packaged juices in order to instill excellent drinking
habits in their children. Both target segments were concerned about the consequences of
preservatives, and ease of consumption and a ready option for visitors are both inferior to fresh
fruit juice. Sugarcane juice is primarily drunk in retail shops throughout the summer because
of its moisturizing properties. Consumers have a hard time envisioning sugarcane being
brought into their homes in a packaged form. The primary selling elements from the focused
group participants were freshness, superb taste, hydrating, and colling effects. In the winter,
tastier varieties such as ginger, lime, and other citrus fruits may be tried to attract those who
are interested in it solely for its taste, hence essential considerations favoring packed fruit
juices. In-depth conversations with youth, retail shop managers, and regional sales managers
Fresh fruit juice is far superior to pre-packaged juices, as the primary objective for drinking
juices is to improve one's health. It is not practical to go to a kiosk/juice stall every time the
family needs juice, thus it is preferable to carry the juice home in a packed form. The brand
lends credibility to the product, boosting the number of people who try out the new offering.
Tetra packs are more popular than bottles among consumers. There is a flavor difference
between boxed juice and fresh juice. People may drink packaged fruit juice if it tasted like
millet. Sugarcane juice V may be consumed by some because of its normal refreshing impact,
and good sugarcane juice flavor is a close second. For children, though, it is frequently the
opposite way around. Customers like juice that is made immediately in front of their eyes. They
don't realize that sugarcane juice may be stored for a long time without losing its freshness.

4. Identify the area of exploration for the next stage of research.

Ans : The exploratory research provided insights related to the juice market. It was able to
define the context for further research which would help to reach a conclusion for the problem.
They needed a more focused approach which would help to understand the underlying
customer behaviour, expectations and narrow down the customer segment.
The conclusive research would help them understand the pricing, packaging, flavour variants
and behaviour. The research should be able to estimate the potential of the market in terms of
demographic, socio-economic and preferred purchase locations. The research needs to be
descriptive in nature and should establish new parameters to judge the position of the proposed
product in the market to generate a customer targeting strategy. The exploratory research
would serve as a inference to define the boundaries for the questionnaire. They need to check
on the credibility of the research and need to understand the factors at the core. The brand
awareness and buying behaviour along with the expected product specifications should be
established to reach the decision-making process.