Fruit punch - Launching a New Product - Marketing
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The project report focuses on FP Agro Pvt Ltd, a company aiming to establish itself in the fruit juice and drink market in India, which is currently valued at approximately INR 1,200 crore. It discusses the fruit beverage industry's growth, FP Agro's mission and vision, target market, competitive analysis, and a marketing mix strategy including product offerings and pricing. FP Agro plans to capture 5% of the market share within a year, with aspirations to reach 30% by 2016 through innovative product offerings and strategic marketing initiatives.
Fruit punch - Launching a New Product - Marketing
- 1. Marketing Management A Project Report on FP Agro Pvt Ltd Group Members Marshall D’Souza # 115 Maulik Mehta # 136 Nikhil Mehta # 137 Vishal Pansari # 149 Kamlesh Parmar # 150 Niket Raut # 161
- 4. Agenda Industry Analysis Why this Product? About the Company Mission & Vision Target Market Competitive Analysis SWOT Analysis Marketing Mix (4 P’s)
- 6. INDUSTRIAL ANALYSIS Branded fruit beverage market in India is estimated to be worth Rs. 1,200 crore (nectars, drinks and juices combined) Juices - over 85% pulp content Nectars - 20% to 85% pulp content Fruit Drink – Less than 20% pulp content Segment Market Share Juices 30% Nectars 10% Fruit Drink 60%
- 7. INDUSTRIAL ANALYSIS The Fruit Drink market has grown at a 20% to 25% rate. Of this, more expensive juices segment has grown at rate of 40% this year. It accounted for only 15% of the fruit beverage 3 years back. In–home consumption of juices has gone up from 30%, three years back to 80% today. Mango based drinks account for two thirds of fruit drinks industry. More than 80 % of sales happen through the unorganized route - juice centers, street corner shops and so on
- 8. About FP AGRO PVT LTD FP Agro will produce fruit juice & fruit drinks. FP Agro is going to make unique position in terms of corporate presence with its advanced technology and the instrumentation required to manufacture a Juice that has many different flavors, for utmost customer satisfaction. FP Agro will be an environment-friendly company dedicated on sustainable development and corporate social responsibility, as a service to society and preservation of nature. FP Agro headquarter will be situated in Mumbai and it would be having Satellite branches in major Metros.
- 9. MISSION “To be a leading producer of fruit juices based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to our partners and stakeholders.”
- 10. VISION “To be India’s Premier Fruit Juice Company, offering nutritious & superior quality tasting drinks to its consumers. By 2016 we aim to achieve 30% of Market Share, and while doing it we would be the best in terms of consumer value, customer service, employee talent, and consistent and predictable growth.”
- 11. Why this Product? India currently produces about 50 million tonnes of fruits, which is about 9% of the world’s production of fruits. Though India has a strong raw material base, it has been unable to tap the potential for processing and value addition in perishables like fruits and vegetables. Only about 2 percent of the fruits and vegetables in India are processed, which is much lower when compared to countries like USA (65 %), Philippines (78%) and China (23)%
- 12. Why this Product? Factors Driving Demand for Our Product 1) Changing age profile- A relatively larger share of young population which has the ability to spend on processed foods 2) Increase in income- The middle and upper middle income groups growing at a faster rate than in developed countries resulting in higher spending on food 3) Social changes- Increasing number of working women 4) Life style factors- Increasing health consciousness and need for convenience fruit drink 5) Availability of Organized Retail outlets- These provide the much needed forward linkages
- 13. TARGET MARKET Primary Market – Kids – Fond of Fruit Juice (fond of mango, strawberry) – Teens – More experimental – Youth – Experimental and more buying power – Working People – Housewives – Elderly people Secondary Market – Travel Industry – Airlines, Railways and Local Transport Systems – Recreational – Movie Theatres, Malls, Amusement Parks. – School, Colleges – Hotels, Restaurants, Bars etc.
- 14. Market Segmentation Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs Variables Used for Segmentation 1) Geographic variables 2) Demographic variables 3) Psychographic variables 4) Behavioral variables
- 15. Market Segmentation Variables Geographic Demographic By leveraging the benefits of liberalization and Age – all age group integration of the markets of the world, FP will Gender – Both Male and Female seek to serve both domestic and international Family size - doesn’t matter customers. Education - doesn’t matter Metropolitan Cities, major cities/towns of the Income – middle & hi end consumer states. Occupation – student, working and retired people Density of Area: Urban, Semi-urban, Rural. nationality/race – doesn’t matter language - doesn’t matter Climate: Tropical Psychographic Behavioral Personality No benefit sought product usage rate Lifestyle Yes brand loyalty Value Yes profitability Attitude Yes income status
- 16. Major Competitor Analysis Dabur's flagship brand Real fruit juice is a Tropicana is a product of vast PEPSI market leader in the packaged fruit juice family and has a market share of 25% category. The company sources orange juice Real with a market share of 57 % offers to concentrates from Brazil. its consumers the largest range of 9 juices They come in Tetrapaks of one litre and that comprise orange, mango, pineapple, PET bottles of 500 ml and one litre. mixed fruit, grape, guava, tomato, litchi and cranberry. Pepsi also markets Gatorade an energy drink for the sports personnel which is a Real Active orange carrot juice, India's first sugar-free Diet Pepsi. packaged fruit + vegetable juice. Pepsi, in association with Unilever have Spread over 11 acres and geared to process launched Lipton iced tea 150 tonnes of fruit per day, it has the capacity to produce 192 tonnes of pulp/concentrate
- 17. Major Competitor Analysis Frooti from Parle Agro is the largest Maaza was launched in 1976. distributed fruit drink with 85% market In 1993, Maaza was acquired by coca cola share (Tetra Pack) India. It reaches more than 10 lakh retail outlets Over the years, Maaza has become in up to class C towns synonymous with mango. Parle’s Agro’s APPY, in 1996 had a The drink became a hit with successful market share of 5% in the fruit drink advertisement campaigns like "Taaza segment mango, maaza mango,' and 'Botal mein In 2003 its new variant-APPY FIZZ was aam, maaza hain naam. launched which was a hit. It is available in 200 ml , 250 ml , 125 ml Tetrapak and 200 ml Tetrapak.
- 18. Strengths & Weakness of Competitors Name Strengths Weakness CavinKare Pvt Ltd Acquired Maa Fruits Pvt Ltd Entering in a new Distribution network segment Coca Cola India Global leader in beverages New Entry Growing Fast PepsiCo Global Brand in beverage Less Product Line Parle Agro Market share Less Product Line Dabur Market leader Less cost effective Godrej Beverages Innovation New entry Ladakh Foods Nutrients Taste Mother dairy Cost Effective New Entry
- 19. SWOT ANALYSIS STRENGTH WEAKNESS • Adequate availability of raw • Seasonal availability of fruits INTERNAL materials • Brand acknowledgement • Price, a competitive advantage • Late entry into the market. • Natural Product. • Dependence on HP fruits. • Dependence on Monsoon OPPORTUNITY THREATS • Participation with a growing • Cut throat competition EXTERNAL industry. • Unstable government policies • Competitive advantage over • Rising Global Warming carbonated soft drinks. • Success of incredible India campaign • Possible deal with Mumbai Criket Association (MCA).
- 20. Marketing Mix
- 21. Product Fresh Punch is a 100 percent fruit juice which will be produced and marketed by the FP Agro Industries Ltd. BRAND NAME: FRUIT PUNCH
- 22. Our Product Variants Mixed Fruit Orange Crispy Apple Mango Bytez Mania
- 23. Product Life Cycle Our product lie in Introduction Period of PLC Low sales High costs per customer Negative profits Innovator customers Few competitors Objective: To create awareness of product Offer a basic product Price at cost-plus Selective distribution Awareness – dealers and early adopters Induce trial via heavy sales promotion
- 24. Place Kullu Hazira and Dahej (Himachal Pradesh) (Gujarat)
- 25. Place In the initial phase we would be outsourcing fruit processing and packaging of Fruit Juices under FP brand. Fruits such as Orange, Apple, Pineapple etc would be purchased from Kullu. Fruit Processing & Packaging would be outsourced to local producer. Mango would be purchased from Hazira and Dahej. Fruit Processing & Packaging would be outsourced to local producer. Mode of Transport: Road Transport
- 26. Pricing As a new comer our pricing strategy is to introduce our products in the market at lower prices so as to create huge demand in the market and then compete with other competitors. As we come up in the demand, we will increase our prices and will provide more efficient and affordable juices
- 27. Pricing Strategy Penetration Pricing Our product will be lie on penetration strategy with high quality & low price For introducing new product Price low to capture market share Expect to make profit in volume
- 28. Promotion As we are in the Introduction phase, our objective is to create brand awareness through Informative Advertising. Use of Print Media, Radio Advertisement, Hoardings in Public Spots, Sample Distribution, Organizing Events, TV Commercial etc. Tie Up with major Cinema halls to promote our products during Intervals. In-film advertising, in its most effective form, is about a brand being a part of the cinema's content.
- 29. Web Marketing Social Networking: In order to reach out to the TA and ensure that they feel more connected with the brand it is necessary to start making conversation. facebook Creating a community on facebook Creating a Fan page on facebook This will enable the brand to keep its TA engaged and updated on the introduction of new flavors and events twitter Creating an active account on a micro-blogging site such as twitter, where regular tweets on product and event updates will ensure interactivity Followers will be encouraged to tweet their suggestions on new flavors.
- 30. 5 Year Financial Planning (Rs. in lacs) No. Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year A Installed Capacity (In Tonnes) 1070 1070 1070 1070 1070 Capacity Utilisation 75% 85% 85% 85% 85% Sales Realisation (20 % Growth yoy) 115.00 138.00 165.60 198.72 238.46 B Cost of Production 23.00 27.60 33.12 39.74 Raw Materials 54.75 60.23 66.25 72.87 80.16 Packing Material 4.25 4.68 5.14 5.66 6.22 Salaries 21.25 23.38 25.71 28.28 31.11 Stores & Spares 1.50 1.65 1.82 2.00 2.20 Selling and Distribution 8.50 9.35 10.29 11.31 12.44 Administrative Expenses 5.00 5.50 6.05 6.66 7.32 Total 95.25 104.78 115.25 126.78 139.46 C Profit before Interest & Depreciation 19.75 33.23 50.35 71.94 99.01 Interest on Term Loan 3.32 3.32 3.32 3.32 3.32 Interest on Working Capital 0.28 0.28 0.28 0.28 0.28 Depreciation 2.23 2.23 2.23 2.23 2.23 Net Profit 13.92 27.40 44.52 66.11 93.18 Income-tax @ 20% 2.78 5.48 8.90 13.22 18.64 Profit after Tax 11.14 21.92 35.61 52.89 74.54 Source: MOFI (Ministry of Food Processing Industries )
- 31. 5 Year Planning Target of capturing 5% of the market share within a year and 30% by 2016-end Initially we would be outsourcing the processing of fruits, but after 3 years we would check the feasibility of starting our own processing plant. R&D Department to be set up by 2013 early, in order to facilitate innovation in existing products. We would open Satellite Branches in Major Cities to facilitate product training & improve on Market Share. FP Agro will be undertaking a host of energy conservation measures
- 32. Bibliography Internet: mofpi.nic.in www.exportersindia.com news.reportlinker.com www.indiaagronet.com hpagrisnet.gov.in www.scribd.com Ministry of Food Processing Industries : Ministry of Food Processing Industries (MFPI): MFPI is the Nodal agency for development of the processed food sector in the country. MFPI's financial assistance schemes include schemes for technology upgradation, HRD, Quality testing, R&D, TQM, backward and forward integration, development of infrastructure including food parks, abattoirs, cold chains etc.
- 33. Thank YOU