MIMD PROJECT REPORT

BY: Shoubhagya Ranjan Mahakud

IIPM,Delhi

TABLE OF CONTENTS

S.NO CONTENT PAGE

1. Introduction 4

2. Objective of the Study 5

3. Research Methodology 6 4. Fruit Juices Market and Consumer Behavior

1.1 The Market Scenario For Fruit Juices 1.2 Consumption Habits 1.3 The Latent Demand And Potential Industrial Earnings For Fruit Juices In India 1.4 The Growing Fruit Juice Market 1.5 Fruit Juice Segment Poised For 30% Growth 1.6 Fruit Juices Go Local 1.7 Factors Affecting Demand 1.8 Consumers Purchasing Behavior 1.9 Large Target Consumer Base And Rising Income Levels 2.1 Fruit Juices, Now A Social Drink � Considering Taste, Health, Purity Parameters 2.2 The Outer Fabric Attracts Consumers

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5. Research Analysis 3.1 Consumers Awareness For Fruit Juices 3.2 Consumers Demand For Fruit Juices 3.3 Consumers Demographic Profile For Fruit Juices 3.4 Consideration Of Different Parameters 3.5 Consumer�s Preference For Packaging 3.6 Consumers Behavior According To Profession 3.7 Competitors Market Share

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6. Conclusion 40

7. Recommendations & Suggestions 41

8. Appendix 42

EXECUTIVE SUMMARY This whole study explains about the consumer buying behavior fruit juices where five brands are taken into consideration-which are-Real, Tropicana, Leh Berry, Jumpin and N-joi.

Consumer buying behavior is a generic term explains about the consumer choice or preferences that they have for a particular product. The buying behavior captures the idea of consumers and link it with the business activities from which the relevant data regarding the consumer preferences can be obtained. The consumer behavior pattern shows the identity, value, acceptance and marketing share. Those relevant data which really increase the level of product that means the result obtained from the data can be analyzed for a better result for more innovations. The buying buying pattern and the response of consumers will give the subsequent data for more modification in case of growth of product in the market. Many factors are taken into consideration for knowing the consumer behavior like avaibility, price, flavours, availability, packaging etc. The attitude of consumer also changes when he has many options to purchase at the same time and same place. the purchase decision of consumer shows that attracts prodders to know about the decisions that the consumer make during buying. The players who quickly adapted to the changes were the ones who not only survived but flourished and the ones who were caught napping lost their major share of the market. The consumer is ready to accept product modifications which fly against long held beliefs as long as the modifications are enhancing value to them. Many a time it is �positioning� of the brand which was appropriate at one time, because the restricting factor for its growth. In dealing with traditional products, keep the core the same and modify only the physical form.

This study is based on the consumer behavior pattern by taking into account the consumer consumer who generally consumes fruit juices and that become a daily need for them. The main focus is on the preferences and the market share of each brand that they obtain. The focus is also made on the competitors characteristics and the type of fruit juice (Tropicana, Real, Leh Berry, Jumpin, N-Joi) they lunch in the market to capture their target consumers. Each brand has different level of selling according to their market segments that they have prepared for getting the maximum market share in order to achieve the competitor target and understanding the drawbacks of the producer�s perception towards consumers. As per the objective of the study producers are greatly influenced by the consumers to study the decisions they take during purchase of their product and their fir sight impression. The consumer buying behavior is the key research area of this study by taking into consideration various aspects which can be easily measurable and distinction can be made.

The techniques used are different for secondary analysis as well as per primary

analysis. In secondary analysis the relevant data are obtained from news papers, magazines, television, and websites. Television is another important source of information for this project from which recent data are collected for study. The channels like Star News, Aaj Tak, NDTV has the importance for providing the market share data of the products considered in the study. For primary data collection the techniques used

are questioner technique and personnel interview. The data collected from the primary source are analyzed by different graphical methods. The questioners are separated according to different parameters and different points are assigned for them for perfect weightage to place in the comparative graphs. The pie chart, bar graph and line graph is used in this study to compare different parameters.

The objective of the study deals with the demand of a product can be known from

the consumer�s buying pattern and parameters that he considers during buying a fruit juice like quality, quantity, and availability price packaging and delivery mode. The general factors while purchasing a product like brand, company name, expiry date, price, ingredients added, price and quantity generally influence consumers. Identify the competitor�s strategy force a producer to think different to acquire the reasonable profit from the market and retention of customers for his product. The numerical value of their customer retention gives a clear picture regarding demand of their product. The consumer�s awareness creates a demand towards the particular product. The demand also depends upon some of the other factors like purchasing power population, promotional activities of product in the market and seasonality. The primary key of the objective is to know the consumer perception while buying fruit juices.

It is found from the study that; the profession wise highest number of consumers

is the students who consume fruit juices. The moderate income level of people generally purchases Tropicana, Jumpin and N-joi where as the higher income level people purchase real the most. For each category of consumers their quantity of purchase is also obtained, where the quantity of purchase varies according to their income and physical need. By considering the pricing factor real has lowed consumers attracted where as Jumpin and N-Joy has succeeded in the market in their price level that they have fixed. The price of Tropicana is satisfactory. In this study it is found that packaging has also great importance towards consumer preference as it gives rise to massive purchase and storage. The packaging is divided into four types i.e. tetra pack, plastic bottle, can and glass bottle.Cusomers wants western style packaging with Indian style taste. The natural taste of fruit juices also influenced a lot and consumers generally tend to towards natural flavours inspite of artificial added flavours with synthetic colors in it. According to natural flavours real and Tropicana has succeeded in the market. It is studied that Real has captured the maximum number of customers of the market.

The strategy for the products can be changed by comparing the different factors

that has obtained from the study. To allocate the target consumers is the important work for the producers so that they can match their product nature with the preferences of the consumer who are more willing to buy fruit juices.

INTRODUCTION

The emerging trends in the market have confused producers to sell their product to gain appropriate profit. India is growing day by day in various sectors and preference of people also changing according to the change in business trends. Consumer buying behavior is differenent according to products. A preference of consumer differs due to the different characteristics of the product. This study shows the consumer preference with respect to fruit juices. The demand towards the product can be known from the demographic profile, density of population, retail links and their expectations towards the product. Fruit juices now a day become a social drink which captured the attention of each individual of a society. The restrictions for other type of alcoholic drinks gave a ultimate way of demand for fruit juices.

In Indian market the severe completion among the producers have encouraged

them to go for innovative ways. The competitors have a strong belief towards their brand and products. Producers have inverted their preferences for marketing their products near local consumers. The consumers are mostly lean towards the brands which come across them in the daily life wile going through television, news papers, and magazines, banners displayed in roads and from web sites. The juice marked has turned into a competitive market as there are similar competitors in the market serving the same type of juice by different brand names. The brand names of fruit juices have changed the consumer preferences because of their easy availability, price, quality, packaging, quality etc. Here in this case study those types of fruit juices brands have taken into account who has their most market shares in the market.

The consumer buying behavior shows a way to the competitors in what respect

they can enhance themselves to exist in the market. The blind interpretation of producer force itself towards severe loss. The perceptions towards the individual product shows that whether the consumer will buy it or not .The emerging changes observed in the different levels of consumers. The consumers also change their preferences according to their capability of buying for that particular product. The distinct characteristics may sometimes attract the consumers to buy the product which they may not have purchased before. The retail chain also plays an important role towards it which shows the avaibility of product at the time of need. The consumers are again distinguished into different age groups because of their different consumption pattern of food. In some cases it is observed that fruit juices are only acceptable for sports persons for energy as well as for relaxation, but the health consciousness factor has affected a lot each individual so that they can drink fruit juices for good health. The campaigns for fruit juices have solved much disbelief among the consumers.

This study shows consumer buying behavior by considering the products like

Tropicana, real, leh berry, jumpin and n-joi. Some of the factors are taken into consideration like price, brand, quality, consumer type and profession of different consumers who purchase fruit juices. Their technique of buying is the key of our study. The buying behavior has a important role towards the growth of individual product in the competitive market. The market is dynamic in nature and needs innovations for existence.

OBJECTIVE ! To analyze the consumer awareness for fruit juices. This objective gives a clear idea regarding the consumer awareness towards the fruit juice as well as to wards the different brands prevailing in the market. The consumer�s awareness creates a demand towards the particular product. ! Analyzing the consumer; their buying behavior & demand. The consumers buying behavior is a important parameter which consist of consumer preferences. The demand of a product can be known from the consumer�s buying pattern and parameters that he considers during buying a fruit juice like quality, quantity, availability price packaging and delivery mode. The demand also depends upon some of the other factors like purchasing power population, promotional activities of product in the market and seasonality. ! Understanding the demographic profile of consumers. The consumer�s acceptance depends upon the knowledge and maturity lavel that he has gained during his age for the different food habits prevailing in the surrounding. The age factor is a important factor to know product demand for a particular age group. So the interest can be made to motivate those age groups for buying their product. ! Identification of influencing factor for purchase. Consumers generally go for some of the general factors while purchasing a product like brand, company name, expiry date, price, ingredients added, price and quantity. the perception which a customer interpret from the outer levels of the product influence him a lot to buy that. The influencing factor of purchasing makes a producer to understand the customer need. ! Identify the competitor�s strategy. The competitors pace of capturing consumers though they have similar products in different label name of different companies. Competitors strategies force a producer to think think different to acquire the reasonable profit from the market and retention of customers for his product. Competitors� strategy varies because of competitiveness among them to create identity in front of the consumers by showing different activities and promoting their product name through different techniques. This objective shows the prevailing strategy of the product and the enhancement for the product for greater acceptance in the market. ! Analyze the competitor�s market share. The retention of customers changes from time to time. The retention of customers shows the market share. The retentions from different products show the orientation of customers towards the product. The orientation of consumer change due to the various factors as explained in the above objectives. The numerical value of their customer retention gives a clear picture regarding demand of their product. From this producers change their strategy to retain more customers.

RESEARCH METHODOLOGY

The research methodology primarily based on the secondary data collected from different secondary sources of information. it gives a clear idea regarding the approach of the study to understand the buying behavior of the consumers for the fruit juices. The source of information of past consumer behavior for fruit juices and the present consumer buying behavior compares the differences among the acceptance of product. The recent trends of market also pay emphasis towards the consumer preference. The understanding the fruit juice scenario of India is a important study to make a conclusion regarding the growth of fruit juices in the market, acceptance of particular brand by the people, past draw backs made by the producers and the recommendations by the consumers.

The review of theoretical concepts which are the research based view, core

competence, sustainable competitive advantage concept and the cost leader ship strategy. The theoretical concepts of demand in this study show the demand determination process of a particular product prevailing in the market with high market share.

Source of secondary data are the books, magazines, internet, television, news

papers. There is no particular or specific book where the complete information about consumer behavior for fruit juices. In this case the information from different books is collector and assimilated according to the study objective. The magazines like frontline, business world, Sunday times, Outlook provided a lot of information for it. Television is another important source of information for this project from which recent data are collected for study. The channels like Star News, Aaj Tak, NDTV has the importance for providing the market share data of the products considered in the study. This is the current source of information in once hand as a hard copy. The news papers (especially Business newspapers) provided the desired information. Like Economic Times and Business Standard etc. These newspaper are so important that sometimes they play their role both as Secondary as well as Primary source of Data (because sometimes the current information that is available through these newspapers are not even uploaded on Internet also.)

Developing strategy based on the customer feed back i.e. collection of primary

data by considering a definite sample size of hundred. The primary data based on questionnaire technique and their results gives a generic idea regarding the study objectives. The geographical area for the sample size considered is the local area (South Delhi). The data which are being collected from the consumers during the primary analysis are separated according to their specific weightage. From the questioner five comparative questions are considered for comparison. The open ended questions and the closed ended questions used in the questioner for customer feed back has different weightage and are separated to make a unique analysis. The main influencing questions are again analyzed to get clear result from the analysis. The different companies are considered for realizing the perfect completion among them so that perfect interpretation can be made upon them. for study the fruit juice brands which are considered are Real,Tropicana,Leh Berry,Jumpin,N-Joi.other competitor are also considered for the secondary study but not encountered in the main study.

For detailed comparison according to different parameters like availability, price,

quality, flavor, customer feed back, packaging the questioner are sorted out and the rankings are calculated. The ranking is made like first, second and third. First rank has highest three points, second rank has two points and third rank has one point. According to the rank the numbers of persons are calculated who have given the ranks according to the different parameters. The points obtained from the no of persons gives rise to intermediate point. The summation of all points is a result of total point which is the main criteria for comparison.

The techniques used are different for secondary analysis as well as per primary

analysia.in secondary analysis the relevant data are obtained from news papers, magazines, television, and websites. For primary data collection the techniques used are questioner technique and personnel interview. The data collected from the primary source are analyzed by different graphical methods. The questioners are separated according to different parameters and different points are assigned for them for perfect weightage to place in the comparative graphs. The pie chart, bar graph and line graph is used in this study to compare different parameters.

Fruit Juices Market and Consumer Behavior 1.1 THE MARKET SENARIO FOR FRUIT JUICES

India produces about 9 million tons of fruits every year, growing at a rate of 12% per annum. The total market for fruit juices is 230million litres which includes both packeted and freshly made fruit juices. The proportion of packed fruit juices is small at just 3.4 Mn litres �just over 1% of market, But even this huge volume translate to just 20 ml per capital consumption as against 45 litres in Germany, 42.5 litres in Switzerland and 39 litres in USA. The key issue before the markets was to raise the consumption of packet fruit juices. The consumer perception is not the constant one for the different products available in the market. The perception of consumer depends upon the advancement made by the producers which attracts consumers a lot and holds the market share is huge manner. The market for fruit juices is more concerned about the facts behind fruit juices so the need for it is not diminishing but it is rapidly increasing day by day. For every fruit juice there is certain amount of market share but the real holding of market share depends upon the identity of the product by taking into account price, brand, quality, quantity, packaging, availability, flavor etc.

This Key Note Market Report on fruit juices and health drinks covers the market for fruit juice, health drinks and fruit drinks. In general, carbonates are excluded from this report, although drinks of this type can also be fruit-based. However, there is some overlap with the carbonates sector as health drinks, which might be carbonated and available in ready-to-drink formats of cordials, are included.

For Indians drinking juice is not a new concept. Street corner vendors have been popular for years. Fruit juices in the unorganized segment are considered cheaper and fresher by the consumers, even though they are relatively unhygienic. The organized natural juice market is currently in a nascent stage-though it is growing at a healthy 35-40 percent rate per annum. This market has had high entry barriers. Few customers are convinced about packaged juices being preservative free, and therefore, as healthy as freshly squeezed juice. The drinks market is relatively more mature and growing at 20-25 percent.In 2003, the total UK fruit juices and health drinks market was worth an estimated £2.19bn at retail selling prices (rsp), a rise of 6.6% on 2002. Fruit juice was the largest sector in 2003, accounting for 40.2% of the total market. Despite the relatively mature nature of the fruit juice sector, the market grew strongly in terms of both value and volume between 1999 and 2003. In addition, fruit juices, fruit drinks and health drinks recorded a high household penetration level. A number of factors contributed to this growth, including the increasing interest in health and diet, which is undoubtedly one of the main drivers. In general, fruit juices and health drinks are regarded as healthy choices, certainly in comparison to alternative soft drinks, such as carbonates.

In addition, the strength of the economy and rising household disposable income levels have contributed to the growth of premium-priced products, such as freshly-squeezed juice. Manufacturers have launched innovative products, which are popular with consumers; for example, Sunny Delight proved to be one of the marketing phenomena of the past decade. Although sales of Sunny Delight eventually declined sharply as a result of concerns relating to the high sugar and low juice content of the

drink, many consumers switched to more natural juice drinks rather than leaving the market altogether. In the health drinks sector, Red Bull has enjoyed astonishing success and, since its launch in 1995, has contributed to growing sales in this sector. Indeed, Red Bull is now the most significant brand in the health drinks sector in terms of value, ahead of Lucozade.

Over the next 5 years, Key Note forecasts that the fruit juices and health drinks market will remain healthy, with sales growing by an average annual rate of just over 6%. Increasing concerns relating to health and diet will play a major role in the market, as consumers move away from products that are perceived as being unhealthy, such as carbonated soft drinks, towards more natural alternatives, such as fruit juices. In addition, growing awareness of the importance of the Government�s �five-a-day� campaign to increase fruit and vegetable consumption will encourage new entrants into the market. In particular, younger consumers might regard fruit juice as a convenient way of boosting their consumption of fruit and vegetables.

The fruit juice sector will be boosted by growing demand for premium-priced products, such as smoothies. In addition, heavy marketing expenditure and the introduction of new products that are fortified with vitamins and other additives should help to drive sales. In some European countries, drinks with added vitamins A, C and E have proved very successful. Although this sector is still in its infancy in the UK, it could show rapid growth over the next 5 years.

1.2 CONSUMPTION HABITS

81% of fruit juice consumption in India was unplanned and 38% was pure impulse. Planned purchase of fruit juices was prevented only in metros.60% of fruit juices consumption happened outside the home. Fruit juice consumption was a group activity-just 2% of the population had the fruit juice alone. Indians prefer �fresh juices�-made in front of their eyes. The origin of this preference lies in the belief that is packed looses freshness. In the past 15 years, more than 10 brands of tetra pack and bottled fruit juices have been lunched in India. This brand also happens to be the first in tetra packed fruit drinks and belonging to the largest soft drink manufacturer in India. In a country used to having fresh food all the time, the consumer wanted to see the product. In food products at times seeing is creating the impulse!! tetrapack manufactures have defined the basic need of Indian consumers by not allowing the consumers to see the product. In a country like India which has limited budgets for packaging given the low disposable income levels-and thereby the packed foods don�t carry very attractive and inviting pack graphics, the lack of transparency adds to discomfort levels of the consumers.

Research showed that more than 60% preferred to see the fruit juice they were buying. India is becoming a country which wants western style packing with Indian style taste and thins was posing a great challenge with limited cold storage and cold chain capabilities. Vivita-a new entrant has tried to overcome the �freshness of the juice� issue by packing fruit juices in aseptic PET bottle .with a no preservatives label. The consumer is reassured by being able to see the product before buying.

INDIA KEY SENSUS STATICS OF LAST YEAR Population 1100 Mn. Rural population 805 Mn(73%) Urban population 289 Mn(26%) Male population 578 Mn(52%) Female population 506 Mn(46%) Density 290/km2* Persons per house hold 5.52* Districts 466 Urban agglomeration and towns 3768 Villages (inhabited) 627000 * excluding Assam and Jammu&kashmir

TABLE-1

1.3 THE LATENT DEMAND AND POTENTIAL INDUSTRIAL EARNINGS FOR FRUIT JUICES IN INDIA

The concept of latent demand is rather subtle. The term latent typically refers to

something that is dormant, not observable, or not yet realized. Demand is the notion of an economic quantity that a target population or market requires under different assumptions of price, quality, and distribution, among other factors. Latent demand, therefore, is commonly defined by economists as the industry earnings of a market when that market becomes accessible and attractive to serve by competing firms. It is a measure, therefore, of potential industry earnings (P.I.E.) or total revenues (not profit) if India is served in an efficient manner. It is typically expressed as the total revenues potentially extracted by firms. The �market� is defined at a given level in the value chain. There can be latent demand at the retail level, at the wholesale level, the manufacturing level, and the raw materials level (the P.I.E. of higher levels of the value chain being always smaller than the P.I.E. of levels at lower levels of the same value chain, assuming all levels maintain minimum profitability).

The latent demand for fruit juices in India is not actual or historic sales. Nor is

latent demand future sales. In fact, latent demand can be either lower or higher than actual sales if a market is inefficient (i.e., not representative of relatively competitive levels). Inefficiencies arise from a number of factors, including the lack of international openness, cultural barriers to consumption, regulations, and cartel-like behavior on the part of firms. In general, however, latent demand is typically larger than actual sales in a market.

Production of selected Fruits juices in India

Average (1992/1994) 2002 2003 2004 ('000 tonnes) Bananas juice 9718 16820 16820 16820 Mangoes juice 10108 10640 10780 10800 Oranges juice 1743 3120 3070 3070 Apples juice 1205 1160 1470 1470 Lemons and Limes juce 863 1440 1420 1420 Pineapples juice 956 1180 1310 1300 Grapes juice 684 1210 1150 1200

TABLE-2 For reasons discussed later, this report does not consider the notion of �unit

quantities�, only total latent revenues (i.e., a calculation of price times quantity is never made, though one is implied). The units used in this report are U.S. dollars not adjusted for inflation (i.e., the figures incorporate inflationary trends). If inflation rates vary in a substantial way compared to recent experience, actually sales can also exceed latent demand (not adjusted for inflation). On the other hand, latent demand can be typically higher than actual sales as there are often distribution inefficiencies that reduce actual sales below the level of latent demand. As mentioned in the introduction, this study is strategic in nature, taking an aggregate and long run view, irrespective of the players or products involved. In fact, all the current products or services on the market can cease to exist in their present form (i.e., at a brand-, R&D specification, or corporate-image level) and all the players can be replaced by other firms (i.e., via exits, entries, mergers, bankruptcies, etc.), and there will still be latent demand for fruit juices at the aggregate level. Product and service offerings, and the actual identity of the players involved, while important for certain issues, are relatively unimportant for estimates of latent demand. In order to estimate the latent demand for fruit juices across the states or union territories and cites of India, we used a multistage approach. Before applying the approach, one needs a basic theory from which such estimates are created. In this case, we heavily rely on the use of certain basic economic assumptions. In particular, there is an assumption governing the shape and type of aggregate latent demand functions. Latent

demand functions relate the income of a state or union territory, city, household, or individual to realized consumption. Latent demand (often realized as consumption when an industry is efficient), at any level of the value chain, takes place if an equilibrium is realized. For firms to serve a market, they must perceive a latent demand and be able to serve that demand at a minimal return. The single most important variable determining consumption, assuming latent demand exists, is income (or other financial resources at higher levels of the value chain). Other factors that can pivot or shape demand curves include external or exogenous shocks (i.e., business cycles), and or changes in utility for the product in question. Ignoring, for the moment, exogenous shocks and variations in utility across geographies, the aggregate relation between income and consumption has been a central theme in economics. The figure below concisely summarizes one aspect of problem. In the 1930s, John Meynard Keynes conjectured that as incomes rise, the average propensity to consume would fall. The average propensity to consume is the level of consumption divided by the level of income, or the slope of the line from the origin to the consumption function. He estimated this relationship empirically and found it to be true in the short-run (mostly based on cross-sectional data). The higher the income, the lower the average propensity to consume. This type of consumption function is labeled "A" in the figure below (note the rather flat slope of the curve). In the 1940s, another macroeconomist, Simon Kuznets, estimated long-run consumption functions which indicated that the marginal propensity to consume was rather constant (using time series data). This type of consumption function is shown as "B" in the figure below (note the higher slope and zero-zero intercept). The average propensity to consume is constant. Is it declining or is it constant? A number of other economists, notably Franco Modigliani and Milton Friedman, in the 1950s (and Irving Fisher earlier), explained why the two functions were different using various assumptions on intertemporal budget constraints, savings, and wealth. The shorter the time horizon, the more consumption can depend on wealth (earned in previous years) and business cycles. In the long-run, however, the propensity to consume is more constant. Similarly, in the long run, households with no income eventually have no consumption (wealth is depleted). While the debate surrounding beliefs about how income and consumption are related is interesting, in this study a very particular school of thought is adopted. In particular, we are considering the latent demand for frozen fruits and concentrated fruit juices, adds, drinks, and non-alcoholic cocktails across the states or union territories and cities of India. The smallest cities have few inhabitants. we assume that all of these cities fall along a "long-run" aggregate consumption function. This long-run function applies despite some of these states or union territories having wealth; current income dominates the latent demand for frozen fruits and concentrated fruit juices, adds, drinks, and non-alcoholic cocktails. So, latent demand in the long-run has a zero intercept. However, we allow different propensities to consume (including being on consumption functions with differing slopes, which can account for differences in industrial organization, and end-user preferences).

Given this overriding philosophy, we will now describe the methodology used to create the latent demand estimates for frozen fruits and concentrated fruit juices in India. Since this methodology has been applied to a large number of categories, the rather academic discussion below is general and can be applied to a wide variety of categories and geographic locations, not just frozen fruits and concentrated fruit juices in India. Any study of latent demand requires that some standard be established to define �efficiently served�. Having implemented various alternatives and matched these with market outcomes, we have found that the optimal approach is to assume that certain key indicators are more likely to reflect efficiency than others. These indicators are given greater weight than others in the estimation of latent demand compared to others for which no known data are available. Of the many alternatives, we have found the assumption that the highest aggregate income and highest income-per-capita markets reflect the best standards for �efficiency�. High aggregate income alone is not sufficient (i.e. some cities have high aggregate income, but low income per capita and can not assumed to be efficient). Aggregate income can be operationalzed in a number of ways, including gross domestic product (for industrial categories), or total disposable income (for household categories; population times average income per capita, or number of households times average household income). Latent demand is therefore estimated using data collected for relatively efficient markets from independent data sources (e.g. Official Chinese Agencies, the World Resources Institute, the Organization for Economic Cooperation and Development, various agencies from the United Nations, industry trade associations, the International Monetary Fund, Euromonitor, Mintel, Thomson Financial Services, the U.S. Industrial Outlook, and the World Bank). Depending on original data sources used, the definition of �frozen fruits and concentrated fruit juices� is established. In the case of this report, the data were reported at the aggregate level, with no further breakdown or definition. In other words, any potential product or service that might be incorporated within frozen fruits and concentrated fruit juices falls under this category. Public sources rarely report data at the disaggregated level in order to protect private information from individual firms that might dominate a specific product-market. These sources will therefore aggregate across components of a category and report only the aggregate to the public. While private data are certainly available, this report only relies on public data at the aggregate level without reliance on the summation of various category components. In other words, this report does not aggregate a number of components to arrive at the �whole�. Rather, it starts with the �whole�, and estimates the whole for all states or union territories and cities in India (without needing to know the specific parts that went into the whole in the first place). Based on the aggregate view of concentrated fruit juices as defined above, data were then collected for as many geographic locations as possible for that same definition, at the same level of the value chain. This generates a convenience sample of indicators from which comparable figures are available. If the series in question do not reflect the same accounting period, then adjustments are made. In order to eliminate short-term effects of business cycles, the series are smoothed using an 2 year moving average

weighting scheme (longer weighting schemes do not substantially change the results). If data are available for a geographic region, but these reflect short-run aberrations due to exogenous shocks (such as would be the case of beef sales in a state or union territory or city stricken with foot and mouth disease), these observations were dropped or "filtered" from the analysis. In some cases, data are available on a sporadic basis. In other cases, data may be available for only one year. From a Bayesian perspective, these observations should be given greatest weight in estimating missing years. Assuming that other factors are held constant, the missing years are extrapolated using changes and growth in aggregate national, state or union territory and city-level income. Based on the overriding philosophy of a long-run consumption function (defined earlier), states or union territories and cities which have missing data for any given year, are estimated based on historical dynamics of aggregate income for that geographic entity. Given the data available from the first three steps, the latent demand is estimated using a �varying -parameter cross-sectionally pooled time series model�.ÿ Simply stated, the effect of income on latent demand is assumed to be constant unless there is empirical evidence to suggest that this effect varies (i.e., . the slope of the income effect is not necessarily same for all states or union territories or cities). This assumption applies along the aggregate consumption function, but also over time (i.e., not all states or union territories or cities in India are perceived to have the same income growth prospects over time). Another way of looking at this is to say that latent demand for frozen fruits and concentrated fruit juices, adds, drinks, and non-alcoholic cocktails is more likely to be similar across states or union territories or cities that have similar characteristics in terms of economic development. This approach is useful across geographic regions for which some notion of non-linearity exists in the aggregate cross-region consumption function. For some categories, however, the reader must realize that the numbers will reflect a state�s, union territory�s or city�s contribution to latent demand in India and may never be realized in the form of local sales. Nonlinearities are assumed in cases where filtered data exist along the aggregate consumption function. Because India has more than 5,000 cities, there will always be those cities, especially toward the bottom of the consumption function, where non-linear estimation is simply not possible. For these cities, equilibrium latent demand is assumed to be perfectly parametric and not a function of wealth (i.e., a city�s stock of income), but a function of current income (a city�s flow of income). In the long run, if a state or union territory has no current income, the latent demand for fruit juices is assumed to approach zero. The assumption is that wealth stocks fall rapidly to zero if flow income falls to zero (i.e., cities which earn low levels of income will not use their savings, in the long run, to demand concentrated fruit juices). In a graphical sense, for low income cities, latent demand approaches zero in a parametric linear fashion with a zero-zero intercept. In this stage of the estimation procedure, a low-income city is assumed to have a latent demand

proportional to its income, based on the cities closest to it on the aggregate consumption function. Based on the models described above, latent demand figures are estimated for all major cities in India. These are then aggregated to get state or union territory totals. This report considers a city as a part of the regional and national market. The purpose is to understand the density of demand within a state or union territory and the extent to which a city might be used as a point of distribution within its state or union territory. From an economic perspective, however, a city does not represent a population within rigid geographical boundaries. To an economist or strategic planner, a city represents an area of dominant influence over markets in adjacent areas. This influence varies from one industry to another, but also from one period of time to another. We allocate latent demand across areas of dominant influence based on the relative economic importance of cities within its state or union territory. Not all cities (e.g. the smaller towns) are estimated within each state or union territory as demand may be allocated to adjacent areas of influence. Since some cities have higher economic wealth than others within the same state or union territory, a city�s population is not generally used to allocate latent demand. Rather, the level of economic activity of the city vis-à-vis others is used. 1.4 THE GROWING FRUIT JUICE MARKET

This chance encounter with the wonder plant seabuckthorn was the reason Ladakh Foods was set up as a separate company in 2002 to manufacture and sell seabuckthorn juice as Lehberry. Ladakh Foods today claims to be one of the fastest growing fruit juice companies in a fiercely competitive environment where big names such as Dabur and Pepsi already hold substantial market shares. Even when the fruit juice/nectar market is projected to grow at a scorching pace of 40 per cent, a Tetra Pak study has found that a whopping 86 per cent of the fruit juice market is still lying untapped.

Perhaps one of the main reasons why milk major Mother Dairy announced it is jumping on to the bandwagon of fruit juice. The company has launched packaged fruit juices under its flagship brand, Safal. Starting from Delhi, the product is scheduled for launched on a nation-wide scale in the months to come. The company says that having pioneered the marketing of fresh and frozen vegetable products backed by a modern produce handling and processing facility, Safal is now ready to script a new success story. This time in the packaged fruit juices category. "With the market growing at a healthy rate and with changing lifestyles and rising levels of health consciousness among consumers today, the demand for healthier products like packaged fruit juice is only going to increase in the times to come. The fruit juice category is rapidly growing by over 50 per cent at some stores for us; it's seen as healthy compared to soft drinks. They are more hygienic than roadside fruit juices and are a big hit with yuppies. Also, non-sugar variants find flavours with fitness freaks. For Safal, with its expertise in producing and marketing various horticultural products in India as well as overseas, juices are a logical extension of its portfolio. With the launch of Safal juices. 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 top line. It will continue to be an area of focus.

Pricing is one of the major worries. 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. Pricing is also the downfall of fruit juice importers, which distributes the Australian brand Berri in the South, "It is difficult to make inroads into the middle class as it finds the prices prohibitive. Sales tax on imported products is not uniform across the States. In Tamil Nadu, it is 21 per cent, much lesser in Andhra Pradesh and Karnataka. So a one-litre bottle of Berri costs Rs 110 while a Tropicana is in the Rs 75 range. PET bottles are another reason for the high prices. However, the retail prices are the same across all the States. Natural fruit juices are a growing market and all players should have a level playing field.

Taking advantage of the health consciousness pervading the market, Adluri Foods has introduced cranberry juice (something that the local brands also have done) and is testing a mixed vegetable juice and a cocktail of apple, carrot and orange in the market.

Pepsi recently launched Tropicana Tropics Mango Nectar, which is made entirely from mangoes sourced from within India, as against other flavours for which sourcing has to be done from other countries. The introduction of Tropics Mango Nectar will be followed by Tropics Litchi and Tropics Guava. India is now among the top ten markets for Tropicana worldwide. Significantly India is now an approved source for mango pulp within the Tropicana worldwide system, and can soon emerge as a major sourcing base for other exotic fruits for Tropicana's international market.Which means that if the fruit juice producers work on further development of backward linkages, the pricing issue plaguing this industry can be better tackled. Besides, the industry has already begun to offer packaging solutions to address different price points like a 125 ml pack of fruit drink Maaza from Coca-Cola India at just Rs 5 and a 500 ml Tropicana blend for Rs 25.

So where is the industry headed? It is expected that the market will touch Rs 170 crore by next year and we are targeting break-even within the next four years. So, while 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, Ladakh Foods may repeat this feat in just four years. 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.

With people turning more health conscious, the non-carbonated beverage segment has become one of the fastest growing and most exciting businesses at the moment. For some time now, manufacturers have experimented with some of the formulation and taste issues, offering the consumers better tasting, more healthful alternatives. Evolving from drinks containing a hint of herbs or vitamins, beverages have become an important delivery vehicle for efficacious amounts of nutritional ingredients. Beverages are unusual products in that everyone expects to try new varieties, even from established brands.

While all segments of the beverage market are evolving, the growth seems to be

directed more towards healthy, light and low-calorie drinks, in particular organic and fruit juice varieties.

The Rs 500 crore non-carbonated beverage market in the country is composed of

fruit drinks, nectar and juices. While the fruit drink segment is estimated at Rs 250-300 crore (branded and packaged), the juice market is valued at Rs 150 crore and the nectar is a small category of about Rs 35-50 crore. And the popular brands vying for a share in the sector are Parle's Frooti, Godrej's Jumpin, Coca Cola's Maaza, Pepsi's Tropicana, and Dabur's Real, Nastle's Milo, Soy milk from ProSoya and branded fruit juices from Surya Foods among others. The Rs 1,100 crore health food drinks (HFD) market, classified into two categories of white and brown segments, has remained stagnant for the last several years despite GSKCH (GlaxoSmithKline Consumer Healthcare) and Cadbury's attempts to activate the category. While Cadbury's Bournvita has been at the forefront of the HFD market, GSKCH has also been active. Apart from repositioning its Horlicks brand from health drink to a fun drink, GSKCH more recently has launched its brown drink Boost in 100gm sachets as well in Tetrapak as a ready-to-drink product. GSKCH's Horlicks and other brands like Boost, Viva, Maltova, together have a 75 % share of the health food drinks market. Horlicks alone, as a white beverage, is believed to have an over 50 % market share. Nestle's Milo, however, being a brown drink faces direct competition from Cadbury's Bournvita and GSKCH's Boost. The market has marginally moved from the white malted beverages to the brown segment. The latest to join the race is GCMMF, which has relaunched its health food drink branded as Amul Shakti. What follows is an overview of the latest product offerings from different beverage companies. Parle's Frooti No 1 fruit drink

Frooti from Parle Agro is the largest distributed fruit drink with 85 % market share in India. It reaches more than 10 lakh retail outlets in up to class C towns through more than 1,500 distributors and wholesalers directly and indirectly. India's first real fruit drink in Tetrapak is available in three delicious varieties - mango, orange and pineapple - Frooti Mango from premium Indian mangoes, Frooti Orange from chilled imported orange concentrate from Brazil and Frooti Pineapple made from ripe juicy pineapple. The company's another revenue earning brand includes Bisleri water. The Bisleri brand of mineral water is being made available across the country. It has a market share of 40 %.

Dabur's Real fruit juice in 9 flavours

Dabur's flagship brand Real fruit juice is a market leader in the packaged fruit juice category. Real was launched in 1996 and the brand has carved out a niche for itself

by claiming to be the only fruit juice in packaged form that is 100 % preservative free. Real with a market share of 55 % offers to its consumers the largest range of 9 juices that comprise orange, mango, pineapple, mixed fruit, grape, guava, tomato, litchi and cranberry.

Real Junior, available in 125 ml packs, targets children below six years. It has two

favourite flavours of mango and apple enriched with calcium. Real Activ, a 100 % fruit juice with no added sugar, gives the goodness of fruits without adding extra calories. Today, it is the preferred juice drink for the health and fitness conscious young adults. Real Activ is available in orange, apple, and orange-carrot variants. Real Activ orange carrot juice, India's first packaged fruit + vegetable juice, is a combination of juicy oranges and sweet carrots.

Coolers, a fruit-based beverage, offers traditional 'cooling' recipes in a ready-to-

drink format. It is available in three variants - Aam panna, pomegranate (anar) and watermelon Real juices are offered in hygienic double seal spill proof caps in Tetrapak packaging. Once packed, the 6-layer Tetrapak carton helps retain the freshness of the juice for a longer period of time, thus maintaining the taste and nutrition of the juice. The fruits that go into the juices are sourced from the best sources across the world, the company claims.

Dabur Food produces around 50 million litres of juice annually through its state-

of-the-art facility at Birganj, Nepal. In August 2004, the company commissioned a multi fruit processing facility in Siliguri, in West Bengal, set up by Pasadensa Foods, a wholly owned subsidiary of Dabur Foods Ltd. Spread over 11 acres and geared to process 150 tonnes of fruit per day, it has the capacity to produce 192 tonnes of pulp/concentrate. The plant procures fruits worth Rs 6 crore from West Bengal, North-East, Bihar, Uttar Pradesh, Maharashtra and Andhra Pradesh. It has the highest capacity utilization by processing pineapple, litchi, guava, mango and grape round the year. Godrej's Jumpin & Soyfit in several flavours

The Foods Division of Godrej Industries produces and markets fruit drinks, fruit nectar and Sofit Soymilk. The Jumpin range of fruit drinks come in flavours such as maqngo, apple, pineapple, litchi and orange. They are packaged in hygienic and aseptic Tetrapak that assures top quality. Ice-cold Jumpin can be enjoyed straight or mixed in a punch or a cocktail. They are available in packs of 200 ml.

Godrej Xs fruit juice is packed with extra tang and extra fun.

Xs range of fruit nectar has more fruits making it thick and tasty. Also the vitamins and carbohydrates present in it provide extra energy for a fit and healthy living. Available in orange, mango, litchi and pineapple flavours, Xs come in Tetrapaks of 200 ml and 1000 ml.

Godrej has launched Sofit Soymilk for the health conscious. Sofit Soymilk made from carefully selected soybeans, is a valuable source of proteins and vitamins. Being low in saturated fat and cholesterol free, is becoming a popular drink. Available in mango, apple, malt and plain flavours, Sofit is sold in Tetrapaks of 200 ml and 1000 ml. The 1000 ml pack is priced at Rs 50. Sofit is made by mixing soymilk with real fruit pulp, to give all the health benefits of soy to the consumers with the refreshing taste of fruits, claims the company. Soymilk is free of lactose which is present in cow/buffalo milk. The company is in the process of launching more health products.

Nestle's Milo with 'badam shakti'

Nestle is relaunching its chocolate health food drink Milo by re-energising it with 'badam shakti'. According to company sources, Milo is all set to get a new lease of life with a new packaging, formulation and a distinct positioning. Currently, Milo is available in a SKU of 500gm priced at Rs 96. In the past, Nestle had exited from categories like packaged water business and discontinued a few of its brands, including Nescafe Choc Café and Milkmaid dessert mixes, due to their poor performance.

By giving Milo a new distinct local positioning and introducing the brand in

convenient sachets at lower price point, it is clearly moving away from being a very urban-focused player and targeting newer markets and driving rural demand.

PEPSI'S TROPICANA Pepsi's Tropicana brand fruit juice has registered double digit growth and has outpaced the growth of the packaged fruit juices market in India. India is a very important market for Tropicana and is among the top 10 biggest markets for the brand. The company sources orange juice concentrates from Brazil. Tropicana is available in orange, apple, grape and cranberry flavours and a cocktail in Ruby-red. They come in Tetrapaks of one litre and PET bottles of 500 ml and one litre. Pepsi also markets an energy drink for the sports personnel, called Gatorade, and a sugar-free Diet Pepsi. Pepsi, in association with Hindustan Lever Ltd (HLL) is planning to launch Lipton iced tea in a couple of months. The move is to take on its arch rival Coca Cola which was successful in its business in tea and coffee, both hot and cold in association with McDonald's. Coca Cola's Maaza very popular Maaza was launched in 1976, a drink that offered the same real taste of fruit juices and was available throughout the year. In 1993, Mazza was acquired by Coca Cola India. Mazza currently, dominates the fruit drinks industry. Over the years, Mazza has become synonymous with mango. The drink became a hit with successful advertisement campaigns like "Taaza mango, maaza mango,' and 'Botal mein aam, maaza hain naam.'Consumers regard maaza as wholesome, natural, fun drink which delivers the real

experience of fruit. It5 is available in SKUs of 200 ml RGB, 250 ml RGB, 125 ml Tetrapak and 200 ml Tetrapak.

Besides, Coca Cola is also in the business of tea and coffee under the brand name Georgia Gold. The brand is available at all McDonald's outlets across the country. After the hot beverage did well, the com-pany entered the ice tea and coffee market with Georgia brand last year, again in association with McDonald's. Coke's non-CSD portfolio also comprises powder soft drink concentrate Sunfill, and the bottled water brand Kinley. The company is expected to launch a new low calorie cola and introduce more varieties of flavoured bottled water over the next few months.

A category pioneer in packaged and preservative free fruit juices, Dabur Foods

has achieved another first by creating a new category in the packaged fruit juice market - with the first fruit-vegetable juice combination, Real Activ Orange Carrot. This nutritious powerhouse is a combination of juicy oranges, sweet carrots and is available in 1litre packs for Rs. 70/- only. "A three pronged strategy has driven the launch of Real Activ Orange Carrot: offering a value added juice to consumers in the most popular flavour i.e. Orange juice; creating a new category that currently does not exist in India; and expanding the entire choice set of juices available. We believe this launch will expand the market for natural, 100% preservative free packaged juices in India and is a part of our overall strategy to offer consumers a healthier juice and the widest choice possible," said Mr. Amit Burman, CEO, Dabur Foods Ltd. This strategy is an outcome of an innovative product development plan that combines product ideation and extensive consumer feedback. On Real Activ Orange Carrot, the company's research showed that consumers were looking at an orange+ option i.e. a way of making the all-time favourite orange juice more nutritious and healthy. Several options were considered and the orange-carrot combination was chosen because it made the healthiest combination; the two flavours blended well with each other creating a more flavourful juice; and there was a high degree of comfort with the combination. This is a familiar combination as traditionally, people drink carrot juice in India and its health benefits are known.

Real Activ Orange brings together the taste and nutrition of orange, with beta-carotene rich carrot juice that is recognized by health experts as the 'wonder juice'. Packed with high amount of antioxidants i.e. Vitamin A, C and E, Real Activ Orange Carrot juice provides instant rejuvenation to body and also strengthens immunity levels. This segment largely consumes Orange juice is looking for ways to 'get more'. This led us to develop a combination that delivers great orange taste with the beta-carotene & vitamin C, rich carrot juice - creating a completely natural 'wonder juice'.Real Activ Orange Carrot will be marketed using both above the line advertising as well as a complete below the line programme that will ensure extensive consumer sampling in corporate campuses across the country," adds Sanjay Sharma, Head of Marketing, Dabur Foods Ltd. Globally the fruit+veg combo juice market is a fast growing niche that appeals to health conscious adults who want their juice to 'deliver more'. Interestingly, this is not an entirely alien concept to the Indian consumer who has been accustomed to drinking

mixed fruit and getable juices from the neighbourhood juice wallah, but did not have this choice when it came to hygienically packaged juice. Real Activ is targeted at health conscious young executives for whom fitness is a way of life and is available in orange and apple flavors. In a complete break away from the conventional advertising for fruit juices, the new Real Activ TVC uses lifestyle imagery to position the brand as a part of the active lifestyle of young professionals by providing a refreshing alternative that keeps them going. The commercial shows a young urban professional, who after a hard day's work drops his professional gear and transforms into a cool and relaxed person who recharges himself -with Real Activ which acts as a catalyst for this transformation. This year Dabur Foods has also realigned the flagship brand, Real so that the look and feel of the brand became more effective in communicating its core benefit i.e. Real tastes like eating a fruit. The first step was the relaunch of Real in a new, vibrant and international look designed to maximise drool appeal. The second step was to change the brand communication for which three different TVC's are being used to talk to distinct audiences i.e. school kids, mothers and young professionals in varied real life situations. The Real Activ TVC was the third in the series of advertisements. The third step is an integrated communications plan using both above the line and below the line methods to be able to involve and engage consumers more directly.

Real Fruit Juice is India's leading packaged, 100% preservative free fruit juice brand offering consumers the great taste and wholesome nutrition of freshly squeezed juice in a hygienic and attractive pack. It offers the largest range in India with eight juices: orange, mango, pineapple, grape, guava, mixed fruit, tomato and litchi.Dabur Foods is the only juice company in India and among the top 5 companies in the world to use the latest spin cap tetra pack, cold fill technology and spill-proof double seal cap for packaging Real. 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. 'Real' was recognized as the 'Fastest growing brand' for 2001-02 in the first ever beverage industry seminar in India. Real Fruit Juice is a market leader in packaged fruit juice category commanding more than 55% market share.

1.5 FRUIT JUICE SEGMENT POISED FOR 30% GROWTH The branded fruit juice market in India is estimated to be worth Rs 500 crore organised fruit beverage market (nectars, drinks and juices combined) and the segment is growing at about 30 per cent per annum. Big players like Dabur, Pepsi, Godrej and Parle Agro are already in the market and in view of the swift growth in the market, newcomers like Surya Foods and Agro, Mother Dairy, Ladakh Foods, Pioma Industries have come into the market with new products in the recent years.

Primary food processing is a major industry with a highly fragmented structure that includes hundreds of thousands of rice-mills and hullers, flour mills, pulse mills and oil-seed mills, several thousands of bakeries, traditional food units and fruits, vegetable and spice processing units in the unorganised sector. In comparison, the organised sector is relatively small, with around 516 flour mills, 568 fish processing units, 5,293 fruit and vegetable processing units, 171 meat processing units and numerous dairy processing units at state and district levels.

The share of the organised and unorganised sectors varies across different segments of the industry.

Share of categories in Indian fruits juices &

Vegetables processing sector, 2006

FIGURE-1

In India is almost equally divided between the organised and unorganised sectors, with the organised sector holding 48 per cent of the share. While products like juices and pulp concentrate are largely manufactured by the organised sector, the unorganised sector�in foothold is in the traditional areas of processed items like pickles, sauces and squashes. By size, pickles form the strongest category.

Amit Burman, Chief Executive Officer, Dabur Foods, told Food & Beverage News in an interview that the market share of Dabur's Real Fruit juice is now 60 per cent. No doubt Dabur's Real Fruit juice is the market leader followed by Pepsi's Tropicana. The two major fruit juice makers in India, Tropicana and Dabur are going all out to tease Indian taste buds with ethnic flavours. However, Godrej's Jumpin is slowly achieving its space in the fruit juice market. Godrej Industries Foods Division has introduced fruit juices under the Xs brand, which earlier only consisted of nectars. Parle Agro's Frooti and N-Joi too are doing well in the market. Delhi NCR-based Surya Foods and Agro Ltd, manufacturers of Priyagold biscuits, has forayed into the juices segment. Mother Dairy has recently launched the Safal brand of juices. Safal is currently available in orange, mixed fruit, grape and an orange-apple combination. Ladakh Foods, makers of the Leh Berry seabuckthorn berry drink, has now launched an apple-peach combination juice and a mixed fruit variant. Ahmedabad-based Pioma Industries, makers of the Rasna brand of soft drink concentrates, test marketed a diluted mango juice in Andhra Pradesh recently.

Real juices from Dabur Foods Dabur Foods introduced for the first time in the Indian market Cranberry juice - Real Cranberry Nectar. An innovative product from Dabur Foods' portfolio, Real Cranberry Nectar is exotic fruit juice nectar, available in 1-litre packs. According to sources, Real Cranberry offers the exotic flavour and nutritive value of cranberries, rich in vitamins, minerals and antioxidants, which make it a healthy beverage. 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. Dabur Foods is the only juice company in India and among the top 5 companies in the world to use the 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. Dabur Foods also launched preservative-free fruit juice a sub-brand Real Junior in 2004, targeted at kids below six years - creating an age-specific market segmentation. This is claimed to be a first of its kind segmentation in the Indian fruit juice market in keeping with Dabur's marketing strategy of segmenting the market with customised fruit juices. Real Junior has two flavours - mango and apple, enriched with calcium, in 125 ml packs for children below six years. The vibrant packs with animated fruit characters are intended to appeal to children by highlighting the taste and nutrition of Real Junior. Dabur Foods has a portfolio of nine variants under the Real brand, which offers the largest range of fruit juices - an assortment of traditional Indian and international flavours - orange, mango, tomato, pineapple, mixed fruit, grape, guava, litchi and cranberry. To expand the choice-set of juices for consumers, Dabur Foods has constantly been introducing innovative variants like Real Activ Orange Carrot - India's first fruit-vegetable juice. The company has also launched multiple-size options to kids like Real Fruit Juice School packs that suit varied consumption needs and occasions. Dabur Foods had launched "India's first" packaged, fruit-plus-vegetable juice, Real Activ Orange Carrot, a blend of juicy oranges and sweet carrots. A nutritious powerhouse to boost the health. This powerful combo brings together the taste and nutrition of orange, with the beta-carotene rich carrot juice that is recognised by health experts as the 'wonder juice'. Packed with high amount of antioxidants Vitamins A, C and E, Real Activ Orange Carrot juice provides instant rejuvenation to body and also strengthens the immunity levels. Real Activ Orange Carrot juice is a delicious and convenient way to include more vitamins and minerals in your diet. Carrot juice, also known as the 'miracle juice,' is beneficial for eyes, skin and the digestive system. Orange juice provides energy, relieves nausea and also helps in improving resistance of the body. Real Activ is targeted at health conscious young executives for whom fitness is a way of life and is available in orange and apple flavours. Pepsi's Tropicana

Tropicana has launched a sub-brand Tropicana Tropics and is introducing new flavours mango nectar, guava pulp and litchi juice under this brand. It may be recalled that Pepsi had launched mango and litchi flavours earlier under its fruit drink brand 'Slice' in returnable glass bottles. Tropicana juices have 80 per cent fruit pulp content. At present Tropicana has about seven flavours in the market - apple, pineapple, orange, apple orange, grape and mixed fruit. The company is now working on building the same capacities for other fruits like guava, pineapple, papaya pulp, grapes and pomegranate.

PepsiCo teamed up with Punjab Agri Export Corporation for a joint citrus

cultivation project in 2003 in Punjab. The company was looking for a similar deal with pineapple farmers in Kerala. Dabur Foods is going local with a vengeance with its fruit juices. It is also aiming to expand its market by introducing juices with a lower price tag. The company has launched a new brand 'Coolers' in four variants - green mango, pomegranate, jamun, and water melon with one litre of Cooler priced at Rs 50. Coolers like Tropicana Tropics also contains only 20 per cent of fruit pulp against over 80 per cent in Real variants.

According to sources, Tropicana Pure Premium orange juice is made from one

thing - Orange. Original with no pulp, Homestyle with some pulp, and Grove stand with lots of pulp. Also look for the Calcium fortified products: Calcium plus Vitamin D with no pulp, and Grove stand (Lots of Pulp) with Calcium. Tropicana Pure Premium is the orange juice brand.

Jumpin, Xs from Godrej The foods division of Godrej Industries has been one of the pioneers in the fruit drinks and fruit nectar categories in India. It offers two well-known brands - Jumpin and Xs. Jumpin - this range of fruit drinks is available in four flavours: mango, pineapple, apple and orange. It comes in an innovative baseline pack design that is trendy and easy to hold. Flavour retention is high and freshness of taste is never lost. Jumpin can be enjoyed straight or in a punch or cocktail. It is available in slim packs of 200 ml in trays of 27 (straws provided). Also available in 1000 ml packs. Xs - this brand comes in three flavours: mango, litchi and orange. Xs contains high-quality fruit pulp, which makes it tastier and more filling than ordinary fruit drinks. It can be served straight and also makes a great cocktail mix. Available in packs of 200 ml in trays of 27 (with straws). Also available in 1000 ml packs. The foods division of Godrej Industries has made a mark in the exports market. Jumpin and Xs beverages, manufactured at India's largest singly located plant, a state-of-the-art facility that has ISO 9002 and HACCP certification. This plant uses the latest machinery; it has a rigorous testing procedure, and is manned by a qualified and experienced team of microbiologists and food technologists. The world-class Mandideep plant, near Bhopal in the northern Indian state of Madhya Pradesh, was ISO-9002 certified in May 1995 and is the first facility in its category to get the 'quality management system certification'. Frooti, N-joi from Parle Agro

Parle Agro Ltd is betting on 'N-Joi' - positioned as 'real fruit, real milk' - to further slice open the virgin fruit-milk beverage market. The Mumbai-based company launched N-Joi - initially an Alphonso mango with fresh dairy milk variant. The company has 11 Tetra Pak facilities in the country. Initially, the western and southern markets will meet supplies from the Mumbai plant. Parle Agro's Frooti is reported to be over Rs 250-crore turnover. Frooti's marketshare is claimed to be 85 per cent in the tetrapak segment and 29 per cent in the mango beverage category (including bottles and tetrapak). Mango fruit beverage is estimated to account for 91 per cent of the sales of all fruit juice variants while orange juice accounts for only 3.1 per cent. Further, under the N-joi brand umbrella, the company launched half-a-dozen milky-fruity variants, including peach-milk, strawberry-milk, pineapple-milk, banana-milk, and cheekoo-milk. Frooti remains a dominant mango fruit beverage brand.

Freshgold from Surya Foods & Agro Surya Foods and Agro Ltd, manufacturers of Priyagold biscuits, has forayed into the juices segment. It has set up a state-of-the-art manufacturing facility in Noida, Uttar Pradesh, with an investment of Rs 25 crore. The plant has a capacity of producing 1.5 lakh litres of juice per day. Branded `Freshgold', the one-litre juice in cartons is available in supermarkets and malls in and around Delhi for Rs 60. B P Agarwal, Chairman, Surya Foods and Agro Ltd, said that though the juices are currently available only in the northern markets, the company has a plan to launch it in the south in near future. Leh Berry from Ladakh Foods Ladakh Foods is building a portfolio of products from fruit juices to jams and sauces, based on the little-known seabuckthorn berry, which grows in the Ladakh region. That may seem like a risky gamble. But Ladakh Foods doesn't think so. It launched Leh Berry a couple of months ago. Its first fruit juice in Delhi and it's selling it in the more affluent parts of town. Since January the drink has also been on shopshelves in cities like Hyderabad, Nagpur and Pune. According to company sources, the juice will be competing with established players as Tropicana and Real. Leh Berry believes it has the advantage of a fresh taste. But its competitive edge may well lie in its positioning. Ladakh Foods is marketing Leh Berry as a nutrition drink (it prefers not to use the word health, with its bitter, medicinal associations), based on the chronicled nutritional properties of the seabuckthorn fruit. Ladakh Foods' target of capturing at least 7 per cent of the market share within a year and 20 per cent by 2006-end is ambitious, company sourcesadded. Safal juices from Mother Dairy

Mother Dairy has launched packaged fruit juices under the Safal brand. This is nearly 20 years after it launched its 'Safal' brand of processed Encouraging small and medium scale units in export promotion efforts. Enlisting the involvement and support of the State Governments in India for promotion of India's foreign trade. Providing trade information services through electronic accessibility at Business Information Centre, the ITPO sources added.

A catalyst with a selective integrated approach to exports, Aahar concentrates on specific buyers in overseas markets, specific exports and specific products. It is this micro or pinpointed approach to export promotion which marks it out from other export promotion exhibition in the country. For foreign visitors and exhibitors the ITPO sources said, "Arrive in India and leave the rest to us to fix appointments with Indian exporters, organise visits to manufacturing units, arrange display of products for foreign companies, locate suitable manufacturers to carry out modification and product adaptation, identify manufacturing units for export-oriented joint ventures; and supply data on capacity, equipment, quality control, etc.".

1.6 FRUIT JUICES GO LOCAL The two major fruit juice makers in India Tropicana and Dabur are going all out to tease Indian taste buds with ethnic flavours. PepsiCo terms these as flavours that are more relevant to Indians.

For Tropicana India is proving to be a good investment as according to top officials in the company, "India is among Tropicana's top ten markets which is continuously moving up having registered a strong double digit growth last year. But they did not reveal any numbers.

The company wants to ensure that the strong growth continues and also that the market expands further. To this end Tropicana has launched a sub-brand Tropicana Tropics and is introducing new flavours mango nectar, guava pulp and litchi juice under this brand. It may be recalled that Pepsi had launched mango and litchi flavours earlier under its fruit drink brand 'Slice' in returnable glass bottles. The new variants are expected to come for around Rs 50/ litre as these come under the category of 'less than 20 percent fruit pulp' making them less pricey than Tropicana fruit juices all of which retail at above Rs 70/litre. Tropicana juices have 80 percent fruit pulp content. At present Tropicana has about seven flavours in the market � apple, pineapple, orange, apple orange, grape and mixed fruit. Tropicana is also looking at making India the sourcing hub for certain varieties of fruits mainly mango. Pepsi is already exporting nearly 20,000 tonne of mango pulp and concentrate predominantly to west Asia and Europe from India. The company is now working on building the same capacities for other fruits like guava, pineapple, papaya pulp, grapes and pomegranate. PepsiCo teamed up with Punjab Agri Export Corporation for a joint citrus cultivation project in 2003 in Punjab, which is expected to start producing results very soon. The company is now looking for a similar deal with pineapple farmers in Kerala. According to a PepsiCo India spokesperson, the company has begun trials of pineapples imported from Thailand and the Philippines in Kerala. At present the company sources orange juice concentrates from Brazil but through the ongoing project, it is trying to develop a large grower base, which can produce high juice yielding oranges to match its requirements. "India produces 47

million tonne of fruits which provides us an exciting export opportunity within the Asia-Pacific region.

Dabur Foods is also going local with a vengeance with its fruit juices. It is also aiming to expand its market by introducing juices with a lower price tag. The company has launched a new brand 'Coolers' in four variants � green mango, pomegranate, jamun, and water melon with one litre of Cooler priced at Rs 50. Coolers like Tropicana Tropics also contains only 20 per cent of fruit pulp against over 80 per cent in Real variants. Dabur is also aiming at expanding its consumer base. Dabur's Real brand of fruit juices, has proved very successful contributing as much as 85 per cent to the company's Rs86 crore turnover last fiscal. According to the company Coolers has been launched with an investment of Rs12 crore, into research into consumer needs and development of processing capabilities and parameters on the other.

1.7 FACTORS AFFECTING DEMAND

A. POPULATION

Population growth in India is currently 2 percent per year, and varies from state to state. The states with the highest per caput fruit consumption are usually those with lower population growth rates. According to official statistics, population growth is expected to decline to 1.5 percent per year by 2011 when the total population of India is expected to reach 1.2 billion. Significant potential exists to expand fruit consumption in rural areas, states with currently low per caput consumption rates and growing urban areas. Higher levels of per caput fruit consumption are increasingly evident in urban areas, for virtually all income groups, with the higher income levels showing the highest per caput consumption rates.

B. INCOME AND PRICES

The Indian economy has achieved significant growth over the past twenty years. Real annual GDP growth rates have averaged 4.7 percent over the period, despite the Asian economic crisis and slow industrial growth in the past five years. Real per caput income levels increased 3.4 percent per year from 1981 to 1998, with household expenditure for fruits and vegetables estimated to have increased 5 percent per year over the same period. Annual per caput fruit consumption also increased, from 25 kgs in 1981 to 31 kg in 1998.

There is a significant positive relationship between income and fruit consumption. The consumption of tropical and other fruits is highly related to income levels. Data from the Indian Agriculture Research Institute indicate that the richest income group consumes six times more fruit than the lowest income group, in both rural and urban areas, with per caput consumption in urban areas almost twice that of rural areas4. For rural areas, the overall weighted average of the income elasticity of fruit demand for the highest income group was estimated at 0.283 compared to 0.826 for the lowest income levels. Similarly for urban areas, the income elasticities were 0.293 and 0.782 respectively.Thus, the

higher the income the less responsive is fruit consumption to changes in income levels. Given this relationship between income and demand, lower income groups are likely to account for most of the future growth of the market in India, although high income groups may increasingly substitute tropical fruit for other fresh fruits as fruit consumption in these groups approaches saturation.

Prices of fruit have increased more than the General Price Index with total fruit consumption generally highly sensitive to price changes, as discussed above. A substantial price differential exits between wholesale and retail prices as shown by Table 10, primarily due to the margins captured by intermediate buyers and sellers, perishability of product, and long distances between wholesale and retail markets. High retail prices for fresh tropical fruit are one of the primary constraints to increasing consumption, particularly among middle to low income households.

C. CONSUMPTION HABITS AND PREFERENCES

Consumers in India have become increasingly aware of the positive health aspects of fruit consumption, particularly in urban areas. A more diversified diet and interest in healthier eating has led to increased consumption of all fruits. Prices also play an important role in consumer preferences for individual fruits, with tropical fruit prices typically lower than for temperate fruit. Temperate fruits tend to be consumed by the higher income groups, while tropical fruit consumption is more widespread. Large quantities of fresh unripe mangoes are utilized in household preparation of pickles and chutneys. Consumption of lychee and sapota is largely concentrated in higher income households. The market for minor tropical fruits, such as passion fruit, carambola and avocado is expected to rapidly increase over the near to mid-term, with consumption concentrated in higher income groups at the present time.

D. PROMOTIONAL ACTIVITIES

Few national or regional promotional activities, either commercial or state-sponsored, have been developed to encourage domestic consumption of tropical or other fruits in past years. However, nutritional education programmes by the Government of India have resulted in rising demand for higher quality fruit, as well as increased preferences for more varied diets (including more fruit consumption). A number of large agro-processing industries have initiated promotional programmes for processed fruit and juice products in recent years, utilizing mass media and in-store promotions to enhance brand recognition and encourage consumption.

E. SEASONALITY

A survey of three wholesale terminal markets in October 1999 revealed large variations in prices due to seasonality. Furthermore, despite some efforts to better manage surpluses due to seasonality, an estimated 25 percent of total fruit production goes to

waste during post-harvest handling, according to the National Horticulture Board of the Ministry of Agriculture for India. Although the Government of India has taken steps to improve the overall conditions of the fruit industry, future growth is constrained due to inadequate refrigeration and cooling facilities, remote market access and export infrastructure not meeting the demanding requirements for the export of fresh fruit.

1.8 CONSUMERS PURCHASING BEHAVIOUR

The availability of consumer food products in India has grown significantly since the economic reforms beginning in 1991. Indian consumers can now purchase domestically produced cheese, wine, potato chips, ketchup, soft drinks, candy bars, breakfast cereals, ice cream, donuts, biscuits, frozen meats and vegetables, instant noodles, jams and jellies, packaged grains and pulses, soups and some ready to eat packaged and frozen meals. Availability of fresh produce is seasonal. Retail food sales in India were approximately $132 billion in fiscal year 1998 and are growing at 13 percent per year, according to the Ministry of Finance. The retail market for fruits and vegetables has grown at over 20 percent per year in the past few years. Retail sales of subsistence foods such as cereals, breads, pulses and edible oils have started declining. As incomes have risen, there has been a shift in consumption, from subsistence to higher value foods.

Many Indians are vegetarian by tradition; moreover, many can only afford a

vegetarian diet. Meat may be regularly consumed by less than 30 percent of the Indian population, due to its higher cost and a predominance of vegetarianism and Hinduism. However, only 20 percent of the population is strictly vegetarian. Non-vegetarians typically consume meat only once or twice per week. Higher income consumers rely almost entirely on domestic help for their shopping. The domestic help buys staples, vegetables, and fresh foods from local small grocers and vendors, and other products from a variety of general merchants. The middle class has diverse purchasing habits. Many families on the upper end use part-time domestic help to do their shopping, often necessitated by a growing pattern of households with two working parents. Many families at the lower end of the middle class continue to do their own shopping. The poorer segments of the Indian population tend to buy basic staples with the first part of their paychecks, which typically are distributed on the first few days of each month. During the month, the poorer customers will buy whatever fresh foods and consumer goods they can afford, often filling in at the end of the month with some additional staples purchased on credit. In all classes, women do most of the shopping and make most of the food purchase decisions. Most consumers prefer local shops to larger supermarkets because of proximity, personal attention, and lower prices. Nearly 95 percent of consumers purchase fresh fruits and vegetables from a local market or street vendor. Additionally, traditional markets are considered the freshest source for foods.

Indians have a strong preference for freshly prepared foods, and most have a definite prejudice against packaged, branded, or processed foods, believing them to be lower in flavor and nutrients. Many households will not even reheat foods, and make only enough for one meal. This is mainly to avoid waste, but also to ensure freshness since refrigeration is available only in wealthier households. However, with urbanization, rising incomes, more working women, the arrival of large food multinationals, and a

proliferation of fast food outlets, acceptance of packaged food products is increasing. Packaging of imported goods is typically better than that of domestic goods. Also, India has many regional differences in food tastes and preferences. For example, residents of Mumbai (formerly known as Bombay) are more willing to try new foods than those in other Indian cities. As Mumbai is home to a more progressive and skilled labor force than other parts of India, many multinational corporations test market new products in that city. Consumer spending has grown at an average of more than 11.5% a year for more than decade as in most developing nations, a large chunk of Indians consumer expenditure is on basic necessities, especially food-related items. Hence it is not surprising that food ,beverages and tobacco account for as much as 50% of consumption expenditure in 2006.the remaining 50% related to non-food items is expected to rise, due to the growth of percapita income. There are three significant trends in Indian retailing. First, the number of small outlets has grown over the past few years, bucking the worldwide trend toward retail consolidation. Second, Indian retailers have started promoting brands and using basic merchandising techniques. Some of these stores are even charging slotting fees for shelf space. This is in stark contrast to the small shopkeepers who paid personal attention to regular customers and strongly influenced their buying decisions. The shopkeeper�s recommendation was important because he often did not display all the items he stocked. Indian consumers who choose branded foods are less likely to seek the shopkeeper�s recommendation. Lastly, retailers have also started offering home delivery services in urban areas. 1.9 LARGE TARGET CONSUMER BASE AND RISING INCOME LEVELS:

India population is nearly 23 per cent of the global population and is one of the most attractive consumer markets in the world today. Income levels across population segments have been growing in India. According to NCAER data, the consuming class, with an annual income of US$ 980(INR 45000) or above, is growing and is expected to constitute over 80 per cent of the population by 2009-10. with the growing disposal income and the highest ever consumer confidence levels ,Indian consumers propensity to spend is soaring.private final consumption expenditure (PFCE) ROSE 8.3% DURING 2003-2004,the highest growth rate in 23% years.indians purchasing power id further fuelled by easy availability finanace in the form of loans.The increase in income levels of the Indian population and the emergence of the consuming class that has higher propensity to spend, offers great growth opportunities for companies across various sectors.

Growing consuming class (mn households - annual income)

` FIGURE-2 Urban consumers in India have become more exposed to western lifestyles, through overseas travel and presence of foreign media in India. For example, more than 5 million Indians travelled abroad last year and this number is expected to increase by 15 per cent to 20 per cent per annum. Increase in the population of working women and increasing prevalence of nuclear doubleincome families, especially in urban areas, are other trends shaping lifestyles.The food processing sector has been impacted by these trends as there has been an increase in the demand for processed, ready-to-cook and ready-to-eat food. It has been assessed by Euromonitor International, a market research company, that the amount of money Indians spend on meals outside the home has more than doubled in the past decade to about US$ 5 billion a year, and is expected to further double in the next 5 years. These trends imply significant growth potential for the sector in future and add to its investment attractiveness.

2.1 FRUIT JUICES NOW A SOCIAL DRINK -- CONSIDERING TASTE, HEALTH, PURITY PARAMETERS

If the findings of a `usage and attitude' study conducted by market research agency Indica Research across 1,200 adults in SEC-A and SEC-B households in Delhi and Mumbai are anything to go by, then it's not just champagne and colas that qualify as social beverages. Packaged fruit juices are as much recognised as social drinks now, with dominant consumption being observed in the company of family and friends.

Fruit juices are perceived as anytime beverages, with consumption being spread more or less evenly between the mid-mornings, afternoons and evenings. And

GeneratioNow is as much inclined to sipping fruit juices as colas, with teenagers driving the maximum trials.

Among packaged fruit beverages, the `awareness to trial' ratio of PepsiCo's Tropicana juice brand has been rated the highest. Up to 17 per cent of the respondents were aware of Tropicana, while the brand's trial stood at 11 per cent. Also, eight per cent of the respondents stocked the brand at their homes. Other parameters where Tropicana edged out competitors included taste, health, purity and nutrition, according to the study. Tropicana was also perceived as `reasonably priced'. Another interesting finding is that the average Indian may have a legendary weakness for mango, but when it comes to preference of fruit-based juices, his choices are in tune with international trends. Therefore, it is orange juice that is the most preferred fruit juice flavour in India, followed by apple, sweet orange and mixed fruit.

The findings indicate that most packaged juice drinking consumers travel abroad on holidays. Other attributes of branded juice consumers include employment of domestic help, ownership of assets and credit cards, and health consciousness with 80 per cent respondents going to aerobic classes or working out at gymnasiums. Understandably therefore, awareness and trial levels of packaged juices are higher within the SEC A category, than among SEC B consumers, the majority of whom rated these as aspirational. While awareness levels are similar in both Mumbai and Delhi, more trials are generated by Delhiites than their counterparts in Mumbai.

As a clear indication that consumers perceive fruit juices as a grocery purchase, 60 per cent of the respondents consume fruit juices at home. While 55 per cent of the respondents consumed 1-litre packs at home, 45 per cent consumed 200-ml packs. The Rs 100-crore packaged fruit juice market is estimated to be growing at 25-30 per cent annually, with Tropicana and Dabur Foods' Real holding 40 per cent market share each.

2.2 The outer fabric attracts consumers

As consumer preferences in the country are shifting towards healthy, natural food products, the demand for non-carbonated soft drinks is accelerating. In the face of increasing competition, companies are redesigning the packages that they offer their products in. At the same time, safety, long shelf life, convenience and economic viability are important considerations while choosing packaging options.

What are the international trends in the packaging of fruit juices? Can any of these

trends be replicated in India? Internationally, a variety of packaging formats are being used for packaging fruit

juices. One of the most popular is aseptic cartons. This is also the most popular format in the organised juice market in India accounting for over 60 per cent of the market. The recent entry of Mother Dairy into this segment points to the growing popularity of this packaging format. More than anything else the entire aseptic processing and packaging system ensures the availability of nutritious products in safe and hygienic formats, which

are also convenient to use. A look at any market in Asia will show how aseptic packaging is growing in popularity.

The increase in demand for fruit juices in the recent years, and the growth in their production is inevitably leading to an increase in demand for packaging options in India. What are the technological innovations that have been introduced in the sector to cater to this increasing demand? The increased demand has led to an increase in the number of sizes, shapes and even printing technology innovations, besides the obvious one of ensuring improved product taste and quality. Manufacturers are getting more aggressive by offering new products to consumers. Companies like Dabur, with their juice drink, Coolers, have entered the segment. Pepsi has recently launched a variety of products in the half litre category along with new fruit mixes. Other players like Godrej have redone their designs to make their packages more attractive. The category is growing at a healthy rate and has attracted new entrants like Ladakh Foods who have introduced a new variety of its seabuckthorn nectar juice under the brand name Leh Berry. The recent entrant into the category is Mother Dairy, which has launched three new flavours in its fruit drinks category. Could you elaborate on the spin-cap and cold fill technology � packaging options and related technologies that Tetra Pak has recently introduced for packaging fruit juices. Which companies are using these technologies and what are their benefits? What other technologies have been introduced recently for packaging fruit juices? The spin cap is a pack opening option that was introduced a couple of years ago. Used the world over, it is currently being used only by Dabur in India. Tropicana and Mother Dairy both use the recap option. Both these options ensure elimination of product spillage at the time of pouring. The product can also be safely reused after opening, provided, of course, it is kept in a refrigerator once the pack is opened. Cold fill technology's biggest benefit is that it ensures microbiological safety and a bacteria free product while keeping the nutritional values intact through the use of a gentle heat treatment process which retains the original state of the product and ensures that the consumer gets value-for-money. Could you also elaborate on the slim line packaging for fruit juices and its benefits over baseline packaging? The difference between the two is mainly in the aesthetics. There is no difference in the technology used in both these options. For both the manufacturer and the retailer, slim line packaging is easier to handle in the distribution chain. It also gives the manufacturer more surface area for graphics.

RESEARCH ANALYSIS

The primary research analysis fulfills the objectives of the study. According to the objective the demand for the fruit juice is more but if we consider a particular product out of the five products which are taken into consideration are Real , Tropicana, Leh Berry, Jumpin and N-Joi.

CONSUMERS AWARNESS FOR FRUIT JUICES

If we compare the consumer awareness for each brand then it is satisfactory that all the consumers have the knowledge regarding the fruit juices available in the market. According to the questioner generally people drink fruit juice for energy instead of getting relaxation. It is found that 78% consumers consume fruit juices for energy. Though the caloric value of fruit juice is high it is consumed for the purpose of getting energy. The consumer awareness for fruit juices is more among all consumers .

38%

25%

15% 9%

13%T.V.NEWS PAPERMAGAZINEWEBSITESOTHER

FIGURE-3

the source of awareness regarding the product are the T.V., newspaper, magazines, websites, banners. It is also found out that the banners displayed in different places attracted their attention towards the product a lot. Out of 100 percentage 13%(other) of people attracted towards the banner advertise. Television is the most demanded for getting awareness regarding fruit juices and their changes made time to time.38% consumers get the idea about fruit juices from television.

Consumers Awarness for Fruit Juices

CONSUMERS DEMAND FOR FRUIT JUICES As from the above analysis it if found that the 78% consumers consume fruit juices and they are aware about it but the apparent side says 18% consumers who are aware of fruit juices like Real,Tropicana,Leh Berry, Jumpin, N-Joi but not aware about the other fruit juices in the market because of their less demand. The demand for fruit juices increases because of the growing income of each individual and increase in purchasing capacity. The change in consumption food habit has really affected the demand of fruit juices. The brand name which ha s great influence towards sales. Most of the people says that real is the best brand and they will go for real. Lesser people then real want to go for Tropicana and subsequently the demand decreases among jumpin and N-Joi . The various campaigns organized by the fruit juice companies have also increased the consumption demand for fruit juices. It is obtained from the primary research that 65% of consumers prefer Real juice as compared to Tropicana, Leh Berry, Jumpin and N-joi. It is also observed that n-joi has lesser consumers attracted towards it shows the lesser demand by consumers according to the various parameters which are explained in the other other analysis as follows. According to the demand of the product by the consumers the producers increase their production by keeping in eye the past demand and competitors demand in the prevailing market. Leh Berry and Tropicana has the same demand in the market because of their retail price in the market for which the consumers buy it. The promotional factor which as great importance towards the demand of the fruit juices. CONSUMERS DEMOGRAPHIC PROFILE FOR FRUIT JUICES

FIGURE-4

From the primary analysis it is found that the fruit juice consumption depends

upon different age group. As per the above pie graph 43% of consumers of age group 20-30 likes to consume fruit juice. Subsequently 28% consumers from the age group 30-

FRUI JUICE ACCEPTACE ACCORDING TO DIFFERENT AGE GROUPS

5%

43%

28%

14%

7%

3%

< 2020-3030-4040-5050-6060-70

40,14% people from the age group 40-50,7% of consumers between the age group 50-60,3% consumers between the age group 60-70 and 5% of consumers less then 20 years of age consumes fruit juices.

CONSIDERATION OF DIFFERENT PARAMETRES

GRAPH SHOWING DIFFERENT PARAMETRES

050

100150200250300

AVAILABILITY

PRICE

QUALITY

FLAVOUR

CUSTOMER FEEDBACK

PACKAGING

DIFFERENT PARAMETRES

POIN

TS

TROPICANAREALLEH BERRYJUMPINN-JOI

FIGURE-5

The parameters such as availability, price, quality, flavor, customer feed back and

packaging are compared for Tropicana, Real, Leh Berry, Jumpin, N-joi .in case of availability Tropicana has got 189 points, real has got 241 points, Leh berry has got 172 points, Jumpin has got 211 points, N-joi has got 177 points. Highest point shows the highest preference and lowest point shows the lowest preference. according to price from graph Tropicana has got 185 points, Real has got 218 points, Leh berry has got 204 points, Jumpin has got 230 points and N-Joi has got 208n points. In case of price real is best. According to quality from graph Tropicana has got 250 points, real has got 255 points, Leh berry has got 230 points, Jumpin has got 180points and N-Joi has got 177 points .In case of price real is best. According to flavour from graph Tropicana has got 175 points, Real has got 246 points, Leh berry has got 190 points, Jumpin has got 170points and N-Joi has got 130 points. According to customer feed back from graph Tropicana has got 160 points, Real has got 220 points, Leh berry has got 150 points, Jumpin has got 130points and N-Joi has got 150 points. According to packaging from graph Tropicana has got 252 points, Real has got 270 points, Leh berry has got 245 points, Jumpin has got 170 points and N-Joi has got 199 points.

The comparison shows a result that real has crossed everyone in five parameters where as other four brands are good in some parameters and not good in some parameters. The total parameters are six and real has achieved best position in five parameters.In case of price it is not preferable by most of the consumers in the market. CONSUMER�S PREFERENCE FOR PACKAGING

CONSUMERS PREFERENCE FOR PACKAGING

01020304050607080

TETRAPACK

PLASTICBOTTLE

CAN GLASSBOTTLE

PACKAGING TYPES

NO O

F PE

OPL

E

FIGURE-6 In this study it is found that packaging has also great importance towards consumer preference as it gives rise to massive purchase and storage. As per the graph above shown the packaging is divided into four types i.e. tetra pack, plastic bottle, can and glass bottle. From the total sample it is analyzed that 70 numbers of people like tetrpack, 18 numbers of consumers like plastic bottle, and 9 numbers of consumers like can and 3 numbers of consumers like to have juice in glass bottles. CONSUMERS BEHAVIOUR ACCORDING TO PROFESSION

PROFESSION WISE CONCUMER PREFERENCE

53%

11%

23%

9% 4%

STUDENT BUSINESSMAN EMPLOYED HOUSEWIFE RETIRED

FIGURE-7 According to the above graph 53% consumer are students.11% of consumers arebusinessmen.23%consumers are employed,9% of consumer are housewife and 4% of consumer are retired. The profession which shows criteria for acceptance in different levels. According to the profession wise their perception varies upto certain extent. COMPETITORS MARKET SHARE

The competitors market analyzed from the acceptance of particuticular product or it can be understood like that-how many customers retained by each fruit juice barand.it is studied that Real has captured the maximum number of customers of the market. From the below figure- the customer retention can be known. The sample size is hundred.

MARKET SHARE

28

51

11

6

4

0 10 20 30 40 50 60TROPICANAREALLEH BERRY

JUMPINN-JOI

FIGURE-8

From the above graph the number of customers retained by each brand can be known, Tropicana has retained 28 customers, real has retained 51 cusomers, Leh berry has retained 11 customers, Jumpin has retained 6 customers and N-joi has retained 4 customers out of total total 100 customers. From this it is clear that real has retained maximum number of customers where as N-joi has retained least numbers of customers. The marked share of Real is more as compared to other brands.

CONCLUSION

The objective of the study is to analyze the consumer behavior with respect to fruit juices which is carried out by considering five fruit juices brands in the market. Tropicana, Real, Leh Berry, Jumpin and N-joi are the five brands which are taken into consideration for the study. These five brands are identical with respect to different characteristics. The thorough study is based on the consumer behavior analysis which serves a great idea of wide idea regarding consumer perception when they go for a particular brand from the market for fulfilling the need. In order to satisfy themselves consumer perceive many things before buying which are analyzed in this paper and result is obtained. The whole study satisfies the objectives of the study. The market share is studied for each brand by taking in to consideration for which product they like to buy or they are buying. It is found that real has retained maximum number of customers where as other brands have retained lesser number of consumer. So other brands can change their strategy for retaining more number of customers for satisfying their objective. The other brands can retain more number of customers if they take some initiatives for those parameters in which they are behind the other brands. The parameters which are considered in this study really affect the consumer buying behavior those are availability, price, quality, quantity, customer feedback and packaging. In some cases Tropicana is good as compared to other brands but simultaneously it is not good if we consider some other parameters. Real has gained maximum number of points in case of availability, quality, flavour , packaging. Real has got lesser points for price because as per consumers the price is not satisfying them where as other brands are having satisfactory price. Consumer awareness is also an important factor for the producers from where they know about the consumer interest regarding their product. Consumer perception generally changes from time to time because of the changes in brands in promotional activities.it are obtained from the study that the awareness increases the market share of the product. In case of demographic profile most of the students who consume fruit juices. The price which real has set per litre of fruit juice of different flavors like orange, pineapple, apple, grape and mixed fruit is high so generally students go for Tropicana ,N-joi and Jumpin. These three brands serve the need of students if we consider the price as a prime factor. The service holders who generally drink less fruit juices and their purchasing power differ from their incomes. The profession wise division of consumes states that their capability of purchasing the brands. Some of the professionals whose income is more they generally go for Real and Tropicana without thinking any thing. For the higher income personnels price is not a prime factor as studied from those consumer behavior study. On the other hand the behavior slightly changes because of the packaging of the fruit juices. The type of purchasing the consumers do is also obtained by considering their frequency of buying the juices and them quantity they purchase at a time or time to time. Mode of purchasing the juices has changed according to the consumer feedback studied from the questioner. The consumer wants to go for the easy way of buying then juices like the milk which is available in the market. It is concluded from this study that Real has highest market share and has the satisfactory level in some parameters. The behaviour of consumer changes according to the parameters which are prevailed for their satisfaction to purchase.

RECOMMENDATION This study gives a clear idea regarding consumer behavour while purchasing. The strategy for the products can be changed by comparing the different factors that has obtained from the study. Real has obtained the highest market share by keeping in consideration the parameters like consumer feedback, packaging, delivery mode, quantity and availability. The other brands have less market share because they don�t have the strategy like Real to capture the market. Tropicana is very near in every aspect to real and by changing the strategy like availability and promotional activities it can cross the market share of Real very easily. The price of Tropicana is affordable and has more number of customers whose profession is student and falls between the age group 20-30.so, Tropicana can do some promotional activities where they can capture other age group so that their market share will increase. The other three brands Leh-Berry, Jumpin and N-joi has less market share because of the quality and the type of packaging they made for sale. The packaging of real is satisfactory. So, they can change the packaging style more advance tetra pack models so that they can have huge market share. It is also observed that flavour has great role for attracting consumers. The flavour of some fruit juices are artificial which really doesn�t attract customers during their second or third time purchase so without adding artificial flavours natural flavour will work more strongly for attracting consumers. To allocate the target consumers is the important work for the producers so that they can match their product nature withy the preferences of the consumer who are more willing to buy fruit juices. Now day�s consumers are more attracted towards the modes of delivery so the modes of delivery can be changed by alternate modes of delivery like home delivery and delivery by automatic machines so that they can get fresh juices which change the psychology of customers a lot as analyzed from this study and questionnaire. As the price of Leh Berry, N-Joi and Jumpin is affordable it attracts the all income level of consumers, but the real has the price which does not attract all level of consumers so alternatively to get more share he has to reduce the profit margin with less margin. The number of consumers fall in the middle class level so it is very nessery retain those level of consumers who have dense population in India. The urban areas mostly keen to adapt those sophisticated products due to the social perceptions.socillly it can be marketed by considering the social activities like festival. The wrong notion among the people is that fruit juices are only good for athletes but that can be changed by campaigns.

So before lunching a new fruit juice brand in market the parameters which have taken into consideration must be utilized for better consumer attraction.

APPENDIX Table-1: INDIA KEY SENSUS STATICS OF LAST YEAR TABLE-2: PRODUCTION OF SELECTED FRUITS JUICES IN

INDIA FIGURE-1: SHARE OF CATEGORIES IN INDIAN FRUITS JUICES &

VEGETABLES PROCESSING SECTOR, 2006 FIGURE-2: GROWING CONSUMING CLASS

(MN HOUSEHOLDS - ANNUAL INCOME) FIGURE-3: CONSUMERS AWARNESS FOR FRUIT JUICES FIGURE-4: CONSUMERS DEMOGRAPHIC PROFILE FOR FRUIT JUICES FIGURE-5: CONSIDERATION OF DIFFERENT PARAMETRES FIGURE-6: CONSUMER�S PREFERENCE FOR PACKAGING FIGURE-7: CONSUMERS BEHAVIOUR ACCORDING TO PROFESSION FIGURE-8: COMPETITORS MARKET SHARE

QUESTIONNAIRE

1. Why do you like to drink fruit juice? Tick the appropriate one-

a) For energy ! b) For relaxation !

2. Which fruit juice do you like most? Tick the appropriate one- A) Tropicana ! B) Real ! C) Leh berry ! D) Jumpin ! E) N-Joi !

3. Why do you prefer that? ______________________________________________ 4. According to you which fruit juice is natural?

a) Tropicana ! b) Real ! c) Leh berry ! d) Jumpin ! e) N-Joi !

5. From where you are getting idea about these fruit juices? 1) Television ! 2) News paper ! 3) Magazine ! 4) Websites ! 5) Others ! 6. Which fruit juice adds you have seen recently?

A) Tropicana ! B) Real ! C) Leh berry ! D) Jumpin ! E) N-Joi !

7. Which fruit juice is mostly available in shops? A) Tropicana ! B) Real ! C) Leh berry ! D) Jumpin ! E) N-Joi !

8. While purchasing fruit juices what are the things generally you consider? A) Brand ! B) Price ! c) Quantity ! D) Packaging ! e) Expiry date ! f) Flavor !

h) if any other please specify _______________________ 9. Do you think that there should be a category of fruit juice on the basis of different age groups? Tick any one- A) Yes ! B) No ! 10. In a week how many times do you purchase it? Tick the appropriate one- A) 1 ! B) 2 ! C) 3 ! D) 4 ! E) 5 ! F) If more than five times then specify _____________ 11. Do you like to drink fruit juices in cold season?

A) Yes ! B) No ! 12. Do you think that hot summer is the appropriate time to drink fruit juice? If yes ! -then why__________________________________ If no ! -then why __________________________________ 13. How much do you like to spend for fruit juice per litre? 1)30-40 !

2)40-50 ! 3)50-60 ! 14. Branding is necessary for a fruit juices? ________________________ 15. Are you satisfied with the packaging that they are providing to you?

A) Yes ! B) No ! 16. What type of packaging would be good for fruit juice? 1) Tetra Pack 2) Plastic bottle

3) Can 17. What are the improvements do you like to add for packaging? ______________________________________________ 18. What should be the easiest way to purchase these fruit juices? Tick any one- A) From retail shops ! B) From automatic machines ! C) Home delivery ! 19. In what pack size do you like to have it? Tick the appropriate one- 1)200 ml. ! 2)300 ml. ! 3)500 ml. ! 4)700 ml. ! 5)1 liter ! 6)1.5 liters ! 20. Do you like to drink mixed flavored or single flavored fruit juice and why? ______________________________________________________________________ 21. In case of flavors, which is best? Tick the appropriate one-

A) Tropicana ! B) Real ! C) Leh berry ! D) Jumpin ! E) N-Joi !

22. How do you like to rank Tropicana, Real and Leh berry according to the following table-

Tropicana Real Leh berry Jumpin N-Joi Avaibility

Quality

1- for FIRST RANK, 2-for SECOND RANK, 3-for THIRD RANK

23. In case of customer feed back which is good?

A) Tropicana ! B) Real ! C) Leh berry ! D) Jumpin !

E) N-Joi ! 24. What is your profession?

i) Student ii) Businessmen iii) Employed iv) Housewife v) Retired

25. Please fill in your essential details for better understanding. b) Name ____________________________ b) Gender Male ! Female !

c) Age ____________ d) Income ____________

BIBLIOGRAPHY

V.S.RAMASWAMY, S.NAMAKUMARI. MARKETING

MANAGEMENT, 2005

PHILIP KOTLER, MARKETING MANAGEMENT, 2005

BOTD, JR.WESTFALL, STASCH.,MARKETING RESEARCH.,2005

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