Product Launch - Services & Marketing Management

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Welingkar Institute of Management Development and Research By Gargi Kapadia

Transcript of Product Launch - Services & Marketing Management

  • 1.Team Members Ajaypal Singh Gargi Kapadia Chandan Bangera -Mr. Rajeev Bal

2. Beverages Market in India Alcoholic Drinks Beer Spirits Wine Soft Drinks Bottled Water Carbonated Drinks Juices Energy Drinks 3. Branded fruit beverage market in India is estimated to be worth Rs. 1,200crore (nectars, drinks and juices combined). Juices - over 85% pulp content Nectars - 20% to 85% pulp content Fruit Drink Less than 20% pulp content Segment Market Share Juices 30% Nectors 10% Fruit Drink 60% 4. The Fruit Drink market has grown at a 20% to 25% rate. Of this, more expensive juices segment has grown at rate of 40% this year. It accounted for only 15% of the fruit beverage 3 years back. Inhome consumption of juices has gone up from 30%, 3 years back to 80% today. Mango based drinks account for two thirds of fruit drinks industry. More than 80 % of sales happen through the unorganized route - juice centers, street corner shops and so on. 5. Produce Fruit Juice & Fruit Drinks. Unique Position in terms of using Organic Fruits with different flavors, for utmost customer satisfaction. An Environment-Friendly Company Dedicated to sustainable development and corporate social responsibility, as a service and preservation of nature. Headquarter in Mumbai. Satellite Branches in Major Metros. 6. Fruit Bar takes its cue from Mother nature herself. Simplicity, Purity and Balance are the three pillars upon which our juice line is built. We make use of nature's own gifts by nourishing our bodies with only locally sourced, organic fresh fruits. Using the purest produce we can lay our hands on and ensure that every Fruit Bar bottle that leaves our kitchens is a well thought out and encouraging prescription for health - from the inside out. 7. We at Fruit Bar envision a bright and prosperous future. Nature has provided us with the necessary elements and we have the knowledge and experience to accomplish it. Our customers families are our top priority; providing healthy beverages for the entire family to enjoy is our aim. Using the best that technology has to offer and the most experienced staff we hope to continue on our journey to be the first choice in beverages. Mother Earth gave us the tools and we will persevere in perfecting the juice-making process. 8. India currently produces about 50 million tones of fruits, which is about 9% of the worlds production of fruits. Though India has a strong raw material base, it has been unable to tap the potential for processing and value addition in perishables like fruits and vegetables. Only about 2 % of the fruits and vegetables in India are processed, which is much lower when compared to countries like USA (65 %), Philippines (78%) and China (23)%. 9. Factors Driving Demand for Our Product: Changing age profile- A relatively larger share of young population which has the ability to spend on processed foods. Increase in income- The middle and upper middle income groups growing at a faster rate than in developed countries resulting in higher spending on food. Social changes- Increasing number of working women. Life style factors- Increasing health consciousness and need for convenience fruit drink. Availability of Organized Retail outlets- These provide the much needed forward linkages. 10. A well Defined Target Market is the first element to a successful marketing strategy. Fruit Bar Inc. will diversify their market by producing organic fresh fruit juices. It is healthier with the combination of vitamins higher than any other drinks. 11. Primary Market Kids (fond of fruit juice specially mango and strawberry) Teens (tendency to experiment) Youth (experimental and buying power / diet conscious) Working People (refreshment) Housewives Elderly People Secondary Market Movie Theaters / Malls Amusement Parks Schools / Colleges Airlines / Railways Hotels / Restaurants / Pubs Sports Clubs 12. Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs and priorities, and then designing and implementing strategies to target them. 13. Geographic Fruit Bar will seek to serve both domestic and international customers. Metropolitan Cities, major cities/towns of the states. Density of Area: Urban, Semi-urban, Rural. Climate: Tropical Demographic Age all age group Gender Both Male and Female Income middle & hi-end consumer Occupation student, working and retired people Nationality/race doesnt matter Psychographic Taste Drinkers Trying something new Adults Lifestyle Dieters / Health Consciousness Youth possibly wanting to drink what adults drink Behavioral Benefit sought Trendy Drinkers / Nutrition Alternative Brand loyalty Diet and Health conscious adults Attitude Enthusiastic and Positive Youth 14. STRENGTH 1) Organic Healthy Product 2) Different attractive packaging as per need 3) Original Fruit Taste with Pulp 4) Fresh and Energetic 5) Reasonable Price 6) Anti - Oxidant WEAKNESS 1) Seasonal Availability of Fruits 2) Late Entry into the Market 3) Dependence On Monsoon OPPORTUNITY 1) Participation with a growing Industry 2) Competitive advantage over carbonated soft drinks 3) Possible deal with Cricket Associations THREATS 1) Cut Throat Competition 2) Unstable Government Policies 3) Rising Global Warming SWOT 15. Organic is a 100% fruit juice which will be produced and marketed by the Fruit Bar Inc. 16. Our product lie in Introduction Period of PLC: Low sales Negative profits Innovator customers Objective: To create awareness of product Offer a basic product Selective distribution Awareness dealers and early adopters Induce trial via heavy sales promotion 17. In the initial phase we would be outsourcing fruit processing and packaging of Fruit Juices under Fruit Bar brand. Fruits such as Orange, Apple, Pineapple etc would be purchased from Kullu. Fruit Processing & Packaging would be outsourced to local producer. Mango would be purchased from Hazira and Dahej. Fruit Processing & Packaging would be outsourced to local producer. Mode of Transport: Road Transport 18. As a new comer our pricing strategy is to introduce our products in the market at lower prices so as to create huge demand in the market and then compete with other competitors. As we come up in the demand, we will increase our prices and will provide more efficient and affordable juices. Penetration Pricing: Our product will be lie on penetration strategy with high quality & low price. For introducing new product . Price low to capture market share. Expect to make profit in volume. 19. Product name Cost of raw material Production Cost Marketing Cost Profit Price per unit Retailers selling price Blood Orange Juice 15 4 5 8 32 40 Apple Juice 15 4 5 8 32 40 Summer fruit with mango and peach 18 5 5 8 36 45 Raspberry and Apple Juice 21 6 5 8 40 50 Passion Fruit Orange and 21 6 5 8 40 50 20. As we are in the Introduction phase, our objective is to create brand awareness through Informative Advertising. Use of Print Media, Radio Advertisement, Hoardings in Public Spots, Sample Distribution, Organizing Events, TV Commercial etc. Tie Up with major Cinema halls to promote our products during Intervals. In-film advertising, in its most effective form, is about a brand being a part of the cinema's content. 21. Social Networking: In order to reach out to the TA and ensure that they feel more connected with the brand it is necessary to start making conversation. Creating a community on facebook. Creating a Fan page on facebook. This will enable the brand to keep its TA engaged and updated on the introduction of new flavors and events. Creating an active account on a micro-blogging site such as twitter, where regular tweets on product and event updates will ensure interactivity. Followers will be encouraged to tweet their suggestions on new flavors. 22. Target of capturing 5% of the market share within a year and 30% by 2016-end. Initially we would be outsourcing the processing of fruits, but after 3 years we would check the feasibility of starting our own processing plant. R&D Department to be set up by early2015 early, in order to facilitate innovation in existing products. We would open Satellite Branches in Major Cities to facilitate product training & improve on Market Share. 23. No. Particulars 1st Year 2nd Year 3rd Year A Installed Capacity (In Tonnes) 1070 1070 1070 Capacity Utilisation 75% 85% 85% Sales Realisation(20% growth yoy) 115.00 138.00 165.60 B Cost of Production Raw Materials 54.75 60.23 66.25 Packing Materials 4.25 4.68 5.14 Salaries 21.25 23.38 25.71 Stores and Spares 1.50 1.65 1.82 Selling and Distribution 8.5. 9.35 10.29 Administrative Expenses 5.00 5.50 6.05 Total 95.25 104.78 115.25 C Profit before Interest and Depreciation 19.75 33.23 50.35 Interest on Term Loan 3.32 3.32 3.32 Interest on Working Capital 0.28 0.28 0.28 Depreciation 2.23 2.23 2.23 Net Profit 13.92 27.40 44.52 Income-tax @ 20% 2.78 5.48 8.90 Profit After Tax in lakhs 11.14 21.92 35.61