MARKETING MIX OF

FROOTI

BY:

MADHUR SHANKAR DAS(503)

SUNAINA GUPTA(511)

SAKSHI GUPTA(514)

PARLE AGRO PVT. LTD.

 COMPANY PROFILE

Leading Indian Food and Beverage Company Commenced operations in 1984. Starting with only

beverages and diversifying to include bottled water in 1993 and confectionery in 2007 and eventually into snacks in 2009 with the launch of Hippo

Associated with many firsts first to identify the dormant mango segment in India and

launch India’s first national Mango drink - Frooti Mango first to introduce fruit drinks in tetra packaging first to introduce apple nectar first to introduce fruit drinks in PET bottles

Turnover is over Rs.600 crore Group strength of over 1000 employees, including over 400

professionals

BEVERAGES SNACKS CONFECTIONERY

Frooti(mango drink) Hippo(chipps in seven flavours)

Mintrox(hard mint candy)

Appy Classic (apple nectar)

Buttercup(hard boiled candy)

Appy Fizz(sparkling apple drink)

Buttercup Softease(toffee)

Saint Juice(juice in different flavours)

Softease Mithai(toffee)

LMN(lemon juice)

Grappo Fizz(sparkling grape juice drink)

WHY FROOTI?

Market leader in the Non Carbonated Soft Drink(NCSD) category with around 60% market share

But now on the decline because of the Fruit Juice Segment, which is increasing at the rate of 20% per annum along with the sluggish growth of the Fruit drink segment

Seen as a kiddy drink(perception due to being available in tetra packs)

Now packaging changed from small green box to the tall yellow one

Also now available in PET BOTTLES of various sizes

ABOUT FROOTI Flagship product of and the most successful drink offered by

Parle Agro India Pvt. Ltd Largest -selling mango drink in India(with an 85% market

share in the fruit drink segment) Ready-to-serve mango drink contains mango pulp, water, sugar, citric acid, ascorbic acid,

and approved colouring and flavouring Available in trendy convenient tetra-pack Eventually launched in a new hygienic hot fill PET bottle.

Now available in different shapes and sizes such as triangular tetra pack, slim tetra pack

Also to expand its consumer base, company also launched a 2 litre PET family pack of Mango Frooti priced at Rs. 75

Changes initiated to enhance the brand image improve visibility and placement at retail outlets

Series of repositioning not just in terms of PACKAGING but also in terms of TAGLINE from the original tagline “Mango Frooti, Fresh and Juicy” to “Juice Up your Life”. Eventually, the original tagline- “Mango Frooti, Fresh and Juicy” was reinstalled

Hot favorite not only in India but all across the world. Exported to the U.S.A., Canada, U.K., U.A.E., Saudi Arabia, Malaysia, Maldives, Singapore, Thailand, New Zealand, Australia, Mozambique, Congo, Ghana, Malawi, Zambia, Nigeria, Tanzania, Japan, Ireland, etc

NON-CARBONATED SOFT DRINK (NCSD) MARKET IN INDIA Can be classified as Fruit drinks, Nectar and Juices

Total size of the branded NCSD in the organized segment-Rs.500 crores(ESTIMATED)

Several local / regional brands also exist, besides a huge unorganized sector

COMPARISON OF DIFFERENT CATEGORIES IN NCSD MARKETBASIS OF

DIFFERENCEFRUIT DRINK NECTAR JUICES

MINIMUM FRUIT PULP CONTENT IN THE BEVERAGE

10% 25% -

SIZE IN BRANDED NCSD ORGANISED SEGMENT(IN Rs.)

Rs.250-300 crores

Rs 35-50 crores Rs 150 crores

MAJOR BRANDS Parle’s Frooti, Godrej’s Jumpin, Coca-Cola’s Maaza and Pepsi’s Slice

Dabur,Godrej Xs and Parle’s Appy

Tropicana(30-35%) and Real(55-60% market share)

GROWTH RATE IN THE MARKET

5% p.a - 20-25% p.a(fastest growing)

COMPETITORS

The main competitors of Frooti are as follows:-

Maaza Slice Real Tropicana Godrej’s Jumpin Fresh gold Real activ

MARKETING MIX

PRODUCTo India’s first real fruit drink in a Tetra Pako Frooti Mango is made from premium Indian Mangoes o Mango Frooti contains vitamin A which is essential for

eye sight, growth and healthy skino Frooti comes in NCSD category (NON-CARBONATED

SOFT DRINK) Frooti is available in following quantities:- 65 ml- targeting low income levels 250ml- handy bottles targeting teens as single serves 1000ml- family packs, easy to store in the fridge 250ml pet bottle- used in canteen colleges and offices

PRICE

QUANTITY PRICE (Rs.)

65 ml 2.50

200 ml 10.00

250 ml 12.00

QUANTITY PRICE (Rs.)

250 ml 10.00

500 ml 18.00

1000 ml 30.00

TETRA PACK PET BOTTLE

In order to maintain its position as a market leader, Frooti is offering its product in different quantities and prices depending upon the consumer requirements, preferences and income-levels

PLACE

 oFrooti is the highest distributed brand in Fruit drink segment with an 85% market share in India

oFrooti reaches more than 10 lakh retail outlets through more than 1500 distributors and wholesalers directly and indirectly

o Parle Agro winning the Beverage Industry award for the Best Managed Supply Chain 2002 and the Highest Retail Availability in the year 2002

PROMOTION Past Agency: TBWA, Everest, Percept and Grey have

handled Frooti’s Advertising earlier Current agency: Since 2007, the creative duties of

Frooti are being handled by Creative land Asia

Frooti as a brand has always tried to evolve withits ever evolving consumers to be relevant to them at all times

Frooti was launched in 1985 (contemporary and youthful mango drink)

brand to introduce fruit drinks in tetra packs to Indian consumers

It was cool to have a Frooti

In the nineties

The commercials revolved around the brand’s association with the king of fruits - Mango. Frooti commercials oozed fun and exuberance, while keeping the ‘Fresh & Juicy’ soul of Frooti intact

o Second decade of existence (need for new positioning)

Campaigns worth mentioning–

The Digen Verma campaign (done by Everest)

The Bindaas campaign (by Grey Worldwide).

DIG

EN

VER

MA

CA

MPA

IGN

•Introduced a mysterious character called ‘Digen Verma’

• Created a hype around this person through an aggressive outdoor campaign which was quiet a success

•The ad had mass appeal as the name was ubiquitous, lifestyle related to a normal consumer and was powerful enough to sustain the interest

QUEUE FOR DIGEN VERMA

FROO AND TI CAMPAIGN They introduced two characters called Froo and Ti on

every 200 ml pack of Frooti as part of its retailing initiative

These two characters are being displayed on the packs of the drink

And through tongue twisters, puzzles and various interactive games, the characters are entertaining the children as well as increasing their knowledge about famous personalities and current affairs

These two characters are very different in nature. While froo is an affable girl who is good at studies, ti is a naughty boy who keeps running after froo to get his home-work done

With this move, the company expects to share various activities of its target audience--kids

“WHY GROW UP??” Laid the foundation for a long-term strategy and vision

for the brand It not only highlights the brand make-over, it also stays

true to Frooti’s core mango values Once Frooti prank advertisement like the Giant mangoes rolling down the road,

panicked people trying to dodge the mangoes or simply turning around, yelling and running for their lives

The advertisement did not reveal the product name till the end but still engaged the attention of the viewer and when the line “Juicy mango surprise” appeared in the end the advertisement made just that much more of an impact

The ad appealed to the psyche of the children as well as the adults who are still young at heart, as their tagline “WHY GROW UP?” was in keeping with the playful spirit of the advertisement It was definitely one of the better ad campaigns running those days on television

MARKETING ANALYSIS

SAMPLING PLAN 1)Sampling Unit: Who is to be surveyed?

Urban Consumers 2)Sample Size: How many people to be surveyed? 50

Units (of all age groups) 3)Sampling Procedure

We have taken sample from following areas: Noida Gurgaon New Delhi (Dwarka, Kamla Nagar)

CONSUMER AWARENESS REGARDING VARIOUS FLAVOURS OF FROOTI

INFERENCES: This diagram shows the percentage of respondents who are aware about the various flavours of Frooti.Less promotion of green mango flavour.Less acceptance of green mango flavour among consumers

SHOULD FROOTI COME IN OTHER FLAVOURS?

INFERENCES:This diagram shows the percentage of respondents who think that Frooti should come in other flavours

23%-no

77% yes

WHICH FLAVOURS?

36%

33%

23%

8%

0%

5%

10%

15%

20%

25%

30%

35%

40%

ORANGE PINEAPPLE GRAPE OTHER

OTHER

GRAPE

PINEAPPLE

ORANGE

INFERENCES:In other flavours, consumers have gone for strawberry and lemon.Consumers want Frooti in other flavours.Huge market in flavours other than Mango.Other than Mango, Orange and Pineapple are the most preferred flavours

IS FROOTI READILY AVAILABLE?

90%

10%

YES

NO

INFERENCES: This diagram shows the percentage of respondents who think Frooti is readily available.Good distribution channel of Frooti.Good demand for Frooti in the market

EFFECT OF PROMOTIONAL SCHEMES ON CONSUMER

34%

14%

52%

0%

10%

20%

30%

40%

50%

60%

YES NO MAY BE

YES

NO

MAY BE

INFERENCES:This diagram shows the percentage of respondents whose buying behaviour is influenced by promotional schemes. Consumers are attracted towards promotional schemes.Buying decision of consumer can be changed through consumer schemes

CONSUMER PREFERENCE FOR VARIOUS QUANTITIES OF FROOTI

20.4

27.4

90

20.4

0

10

20

30

40

50

60

70

80

90

BELOW 100ml 200-250ml 500ml 1000ml

BELOW 100ml

200-250ml

500ml

1000ml

INFERENCESThere is good demand for all the quantities.Great demand for 200-250 ml.Introduction of 65 ml was a good move.

COMPARATIVE ANALYSIS OF TETRA-PACK PACKAGING IN VARIOUS QUANTITIES:

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

UP TO 300ml 500ml 1000ml

UP TO 300ml

500ml

1000ml

INFERENCEAs quantity required increases preference for tetra-pack packaging decreases

COMPARATIVE ANALYSIS OF PET BOTTLE PACKAGING IN VARIOUS QUANTITIES:

PET BOTTLE

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

UP TO 300ml 500ml 1000ml

UP TO 300ml

500ml

1000ml

INFERENCEAs quantity required increases preference for Pet-Bottle packaging increases

SWOT ANALYSISSTRENGHTS:

Market leader in NCSD category-60% market share

Innovative - First packaged Mango drink in Indian market, first to introduce Tetra pack, PET bottle packaging in NCSD category

Quick market responder - Introduced 65 ml packaging to cater different segments

Frooti has got a very large quantity basket - available in various quantities like 65 ml, 200 ml, 250 ml, 500 ml and 1 Litre

Efficient distribution network -readily available Frooti is a health drink - Contains Vitamin A Frooti has got a strong Brand Equity

WEAKNESSES:

Frooti is not perceived as a health drink. As per our survey majority of our respondent didn’t consider Frooti has a health drink

Frooti has limited variety of flavour - only mango and green mango

“Frooti means mango”, syndrome in the mind of consumers. Margin given to retailers and distributors is less as

compared to its competitors Main target audience of Frooti is kids Frooti has no brand ambassador No brand expansion - Brand equity of Frooti is not utilized

properly

OPPORTUNITIES:

Huge untapped unorganized sector in NCSD category Huge untapped market in other flavours - Orange,

Pineapples, Grape Growing market share of NCSD category Demographically, in the coming years around 55% of the

population will consist of below 35 years in age, which should be major target market for Frooti

Increasing health awareness among consumers - As per our survey 88% of the respondents preferred fruit drink to carbonated drink

THREATS:

Decreasing share in NCSD category - Fruit juice segment consisting of Real and Tropicana is increasing at the rate of 20-25% per annum as compared to sluggish growth in other segment

Presence of huge unorganized market High consumer preference for flavours other than mango

and green mango Competition with global giants - Coke and Pepsi