CASE STUDY

FREMCO CORPORATION:
UNDERSTANDING INDIAN
MARKET FOR A NEW
PRODUCT LAUNCH
Presented By:
Arzoo Singh
Alok Madhav
Anurag Nagar
Vandana Rana
INDEX
 CASE SUMMARY
 KEYPOINTS
 SWOC ANALYSIS
 QUESTION’S ANSWER
SUMMARY
 The case is about Fremco Corporation Ltd., planning to launch to a new
product in Indian market
 Rajiv Bhagat the CEO of the company evaluating a note prepared by his
strategy team to have good understanding of Indian Market before taking
decision about the new launch.
 Now as per the note
1) India is the hottest destination for all multinational companies due to its
expanding middle & upper class consumers, liberalization policies and
prospects.
2) Many of the multinationals enter India decided to pack and leave the
country because of the miniscule business coming their way. And the
reason for this misadventure is that major market today lies in rural areas
as well as Indian consumers have different tastes and preferences
3) The above scenario is particularly common in food product industry
.Several major food products have failed in India and limited only to four
metropolitan cities only.
CONTINUE
 One of the leading brand in fruit juice market, Fresh and Sweet, which is owned
by one of the biggest and diversified business house Fremco Corporation Ltd.
enter into the already crowded market
 Fremco is recognized in 57 countries as its beverage are recognized as top
products everywhere, as well as its food product like cookies, fruit bar and fruit
based canned products etc ,and its fruit juice is another successful product in its
portfolio in around 30 countries.
 Fresh and Sweet is the leading brand in fruit juice market especially in USA,
owned by Fremco Corporation Ltd.
 The company recently declare that their juice don’t have any sugar, preservative
or additive and preservative, and they also mention that 100% pure fruit juice
till now not available in India.
 Demand for 100% fruit juice is there but they also want something which can
be available for long run.
 Fremco Ltd. have their raw material from orange producing state i.e. US but
looking for the raw material in India and they have long term view and are not in
a hurry to sell and go back.
CONTINUE
 The company do test market of its two juices in Banglore, Mumbai and
Delhi
 The response was satisfactory
 But the consumer want a juice with little sweeter taste as juice are
bland without sugar.
 To overcome this taste problem company planning to blend juice with
another sweet fruit to get the required taste.
 The response regarding price, packaging and volume was satisfactory.
 Out of 30000crore rupees market for branded Indian drink, only 2 to 3
percent is captured by branded juice and the rest by soft drinks.
 And with the rise in health and fitness, this market supposed to increase
in next two year
 Fremco, well known for its advertisement spender in the company ,
planning an ambitious marketing and advertisement plan or we can say an
aggressive promotional strategy.
CONTINUE
 The agency of Fremco brand working for last month to get desired
data on consumer behavior through ad- campaign, the advertising
expenditure come out be 75lakh, out of which35 spent on television,
10 on hoardings, 18 on sponsorship, 10 on newspaper, and the rest
2lakh on other medium.
 Indian market is flooded with unbranded fruit juice
 The major Indian competitors for Fremco and one multinational one
are Juicy, Berry, Indiana, Grapes, Knight.
KEY POINTS
o India is the hottest destination for all multinational companies due to its
expanding middle & upper class consumers, liberalization policies and
prospects
o Fresh and Sweet is one of the leading brand in fruit juice market
o Fresh and sweet is owned by Fremco which is into diversified food
business , thus it can bear the initial cost to penetrate in the market.
o Indian market is flooded with unbranded fruit juice
o Selling 100% pure juice which is not available in Indian market
o Taste of Indian consumers are different which may induce Fremco to
change its blend of ingredients
o Raw material for Fremco comes from USA ,looking for raw material in
India.
o Response regarding price, packaging and volume of sales in test market is
satisfactory but people demanded for fresh juice but the one which can
be available for long run.
CONTINUE
 Out of 3000crore rupees market for branded Indian drink, only 2 to
3 percent is captured by branded juice and the rest by soft drinks.
 Fremco is one of the biggest advertisement spenders in the country,
spend 75lakh amount in ad- campaign.
SWOC ANALYSIS
STRENGTH
 Established Brand 

 Pure juice

 Good financial position

 Marketing strategy
WEAKNESS
 market share is less

OPPORTUNITY
 Untouched rural market

 Positive response from Indian consumers

CHALLENGES
 local fruit juice vendors

 Competition

 Raw Material
Q1
 Most important prospective is availability of raw material for juice
manufacturing
 Acceptability of packed juice in India
Q2
 Most important prospective is availability of raw material for juice
manufacturing
 Acceptability of packed juice in India
Q3
 Health and Hygiene
 Media Influence

 Convenience

 Product Features

 Package Design

Personal Factors
 Life Style

 Economic Situati
Q4
 Taste which would result in the change in complete
production and processing process
 Raw Material wasn’t available in India itcame from
USA
 Brand loyalty In case of beverages normally new brands
are not quickly accepted by the mass
Q5
 Brand positioning strategy-
 Brands who are in direct competition like juicy, berry, indiana,
grapes
 Competitor's positioning strategy

 Asses the Positioning strategy in other countries

 Comparing the expected result of positioning with the competitor's

positioning in the market so that variance can be obtained.
 
 Product positioning-

 Relevant buyers of the product

 Attributes of the product

 Determining the customer's share of mind(the product they recall

in any category)
ADVERTISING STRATEGY
The main part of IMC process. New product so Push Method should be
used
 Target consumer

 Demographics and Psychographics

 Behaviors

 Needs and Desires

 Communication Media-

 Print—Primarily newspapers (both weekly and daily) and magazines.

 Audio—FM and radio.

 Video—Promotional videos, infomercials.

 World Wide Web.

 Direct mail.

 Outdoor advertising—Billboards, advertisements on public

transportation (cabs, buses).
 Advertising message-
 Points to consider during the formulation of the message-
 Features of the juice
 How do consumers evaluate the juice? What is likely to
persuade them to purchase the juice?
 The message should be precise and simple and should
communicate information about the business and its product.
 Budget-
 Newspaper and magazines

 Audio, Video and internet

 Implementation and Measuring Effectiveness-

If the brand awareness has to be created then market research should be

carried and if sales advertising has to be checked then the following-
 Toll free no.

 Reply coupon

 Reader’s reply in magazines and newspapers

 Total cost & ROI- Calculate the total costs like

 The cost of buying advertising space.

 Design costs, print preparation.

 Brochures and other literature.

 The fulfillment cost (goods, postage, delivery, employee costs and so

on).