Institute of Management Studies

Ghaziabad

Prepared By :Aman Maheshwari

Mayur AgarwalDarpan Agarwal

Vanshaj Tayal

FP AGRO PVT LTDintroduces its new product…..

A project report prepared by marketing department

Agenda

Industry Analysis Why this product?About the companyMission & VisionTarget MarketCompetitive AnalysisSWOT AnalysisMarketing Mix

Beverage Market in India

Alchoholic Drinks

Beer Spirits Wine

Soft Drinks

Bottled Water

Carbonated

DrinksJuices Energy

Drinks

INDUSTRIAL ANALYSIS Branded fruit beverage market in India is estimated to be worth Rs. 1200

crore (nectars, drinks and juices combined) Juices- over 85% pulp content Nectars-20% to 85% pulp content Fruit Drink-Less than 20% pulp content

Segment Market Share

Juices 30%

Nectars 10%

Fruit Drink 60%

INDUSTRIAL ANALYSIS• The Fruit Drink market has grown at a 20% to 25% rate.

• Of this, more expensive juices segment has grown at rate of 40% this year. It accounted for only 15% of the fruit beverage 3 years

back.

• In–home consumption of juices has gone up from 30%, three years back to 80% today.• Mango based drinks account for two thirds of fruit drinks industry. • More than 80 % of sales happen through the unorganized• route - juice centres, street corner shops and so on.

About FP AGRO PVT LTD

• FP Agro will produce fruit juice & fruit drinks.• FP Agro is going to make unique position in terms of corporate

presence with its advanced technology and the instrumentation required to manufacture a Juice that has many different flavours, for utmost customer satisfaction.

• FP Agro will be an environment-friendly company dedicated on sustainable development and corporate social responsibility, as a service to society and preservation of nature.

• FP Agro headquarter will be situated in Mumbai and it would be having Satellite branches in major Metros.

MISSION

• “To be a leading producer of fruit juices based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to our partners and stakeholders.”

VISION

• “To be India’s Premier Fruit Juice Company, offering nutritious & superior quality tasting drinks to its consumers. By 2016 we aim to achieve 30% of Market Share, and while doing it we would be the best in terms of consumer value, customer service, employee talent, and consistent and predictable growth.”

Why this Product?• India currently produces about 50 million tonnes of fruits, which is about

9% of the world’s production of fruits.• Though India has a strong raw material base, it has been unable to tap the

potential for processing and value addition in perishables like fruits and vegetables.

• Only about 2 percent of the fruits and vegetables in India are processed, which is much lower when compared to countries like USA (65 %), Philippines (78%) and China (23)%.

Why this Product?

Factors Driving Demand for Our Product 1) Changing age profile- A relatively larger share of young

population which has the ability to spend on processed foods.2) Increase in income- The middle and upper middle income

groups growing at a faster rate than in developed countries resulting in higher spending on food.

3) Social changes- Increasing number of working women.4) Life style factors- Increasing health consciousness and

need for convenience fruit drink.5) Availability of Organized Retail outlets- These provide the much needed forward linkages.

TARGET MARKET

Primary MarketKids – Fond of Fruit Juice (fond of mango strawberry)Teens – More experimentalYouth – Experimental and more buying power Working People Housewives Elderly people

Secondary Market• – Travel Industry• – Airlines, Railways and Local Transport Systems• – Recreational• – Movie Theatres, Malls, Amusement Parks.• – School, Colleges• – Hotels, Restaurants, Bars etc.

Market Segmentation

• Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs.

Variables Used for Segmentationo Geographic Variableso Demographic Variableso Psychographic Variableso Behavioral Variables

Market Segmentation AnalysisGeographic Demographic Psychographic BehavioralClimate: Tropical Age-all age group Personality-NO Benefit sought

Gender-both male and female

Product usage rate

Density of area: urban, semi urban rural

Family size- doesn’t matterEducation-doesn’t matter

Lifestyle-YES Brand Loyalty

Income-middle and high income customer

Profitability

Metropolitan cities, major cities/ towns of the states.

Occupation-student, working and retired people

Value-YES Income Status

Attitude-YES

Major Competitor Analysis

Dabur's flagship brand Real fruit juice is amarket leader in the packaged fruit juicecategory.

Real with a market share of 57 % offers toits consumers the largest range of 9 juicesthat comprise orange, mango, pineapple,mixed fruit, grape, guava, tomato, litchi andcranberry.

Real Active orange carrot juice, India's firstpackaged fruit + vegetable juice.

Spread over 11 acres and geared to process150 tonnes of fruit per day, it has thecapacity to produce 192 tonnes ofpulp/concentrate

Major Competitor Analysis

Tropicana is a product of vast PEPSIfamily and has a market share of 25%

The company sources orange juiceconcentrates from Brazil.

They come in Tetrapaks of one litre andPET bottles of 500 ml and one litre.

Pepsi also markets Gatorade an energydrink for the sports personnel which is asugar-free Diet Pepsi.

Pepsi also markets Gatorade an energydrink for the sports personnel which is asugar-free Diet Pepsi.

Strengths & Weakness of Competitors

Name Strengths Weakness

CavinKare Pvt Ltd Acquired Maa Fruits Pvt Ltd Entering a new segment

Coca Cola India Global leader in beverages Growing Fast

New Entry

PepsiCo Global Brand in beverage Less Product Line

Parle Agro Market share Less Product Line

Dabur Market Leader Less cost effective

Godrej Beverages Innovation New Entry

Ladakh Foods Nutrients Taste

Mother Dairy Cost Effective New Entry

SWOT ANALYSIS1. Strength• Adequate availability of raw materials• Price, a competitive advantage• Natural Product2. Weakness• Seasonal availability of fruits• Dependence on monsoon• Late entry into the market3. Opportunity• Participation with growing industry• Competitive advantage over carbonated soft drinks• Possible deal with Mumbai cricket Association (MCA)4. Threats• Cut throat competition• Unstable government policies• Rising global warming

POSITIONING

• This is India’s first leading fruit juice company which would be providing “ZE” i.e. zero calorie juices to its consumers.

• Fruit Punch ensures a desired quality fruit juices with herbal nutrients in it which is helpful as a cure for various diseases.

• There are certain fruits whose pulp is enriched with certain nutrients and vitamins. Some Juices are prepared by taking extracts of its pulp, which no other fruit juice company does. For eg- Apple’s pulp, guava’s pulp etc

MARKETING MIX

PRODUCT

• Fruit Punch is a 100 percent fruit juice which will be produced and marketed by the FP Agro Industries Ltd.

• BRAND NAME: FRUIT PUNCH

OUR PRODUCT VARIANTS

1. Orange Byte- ZE

3. Crispy Apple2. Mango Mania

And many

more…….

PRODUCT LIFE CYCLE

• Our product lie in Introduction Period of PL Low sales High costs per customer Negative Profits Innovative customer Few competitors

• Objective: To create awareness of product Offer a basic product Price at cost plus Selective distribution Awareness- dealers and early adopters Induce trial via heavy sales promotion

PRICE

• 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

PRICING STRATEGY

• PENETRATION PRICING Our product will be lie on penetration strategy with high

quality & low price. For introducing new product. Price low to capture market share. Expect to make profit in volume.

PLACE

• Kullu(Himachal Pradesh)

Hazira and Dahej(Gujarat)

PLACE

• In the initial phase we would be outsourcing fruit processing and packaging of Fruit Juices under FP brand.

• Fruits such as Orange, Apple, Pineapple etc would be purchased from Kullu. Fruit Processing & Packaging would be outsourced to local producer.

• Mango would be purchased from Hazira and Dahej. Fruit Processing & Packaging would be outsourced to local producer.

• Mode of Transport: Road Transport

PROMOTION• As we are in the Introduction phase, our objective is to create brand awareness

through Informative Advertising.• Use of Print Media, Radio Advertisement, Hoardings in Public Spots, Sample

Distribution, Organizing Events, TV Commercial etc.• Tie Up with major Cinema halls to promote our products during Intervals.• In-film advertising, in its most effective form, is about a brand being a part of the

cinema's content.

WEB MARKETING

• Social Networking: In order to reach out to the target audience and ensure that they feel more connected with the brand it is necessary to start making conversation.

• Facebook• Creating a community on facebook• Creating a Fan page on facebook• This will enable the brand to keep its target audience

engaged and updated on the introduction of new flavors and events

Thank YOU