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PINNACLEThe Peak of Perfection

Topic Retailer survey of Tropicana

Group members Abhishek Jain

Faraz KhanKamal Saini

Karan PeriwalShruti Gurha

Upasana Choudhury

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Retailer survey of Tropicana

Objectives

• The product range of Tropicana

• Market value of Tropicana

• Tropicana’s positioning in different retail sectors

• Tropicana’s retailing strategy

• Sector wise analysis of Tropicana

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• Tropicana: Subsidiary of PepsiCo. family, a world class leader in foods and beverages.

• Tropicana went Public in 1969

• Purchased by Beatrice in august 1978 for $490 million in cash and stock.

• Sold to The Seagram Company Ltd., the Canadian alcoholic beverage maker, for $1.2 billion in March 1988

• Sold to PepsiCo in 1998

The juice business was sold to the beverage giant for $3.3 billion in cash. Rodkin was then the President and CEO of the company.

• Tropicana Products, Inc.: the leading producer of chilled orange juice and claims the top spot in the overall U.S. orange juice market, with a share of 33 percent

• Tropicana distributes its products in 23 countries

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Product Line, Depth and Width

TROPICANA PREMIUM GOLD

TROPICANA SEASON'S BEST

TROPICANA TROPICS

TROPICANA TWISTER

Orange juice Orange Sweet-Orange Orange

Apple Pineapple Mango

Grape Mixed Fruit Grapes

Orange-apple Tango

Tropical Fruit Juice (fruit fusion)

Mango Nectar

Litchi

Guava

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PRODUCT MARKET SHARE

PRICE MARKETING STRATEGY

PACKAGING Tag Line

REAL 40% Rs 15 for 200ml

Caters children by introducing real junior.Introduced real active for the health cautious customers

Introduced the school kit.Real juices are available in packs of 200ml, 1 litre

Taste like eating a juice

MINUTE MAID

35 % Rs 25 for 400ml

Launched kata aam panna in response to the Tropicana twister

Available in the packs of 400ml and 1 litre bottle.

There is a goodness in every minute

TROPICANA 30% Rs 15 for 200ml

Changed its taste from bitter to sweet to attract Indian consumers.Introduced new products like Tropicana twister.

Launched twister in returnable glass bottles.Others juices are available in the packs of 250 ml and 1 litre

Toot padega fruit

MARKET VALUE OF TROPICANA

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SWOT ANALYSIS

Strengths• FUNDAMENTAL FINANCIAL

SOUNDNESS• GOOD SUPPLY CHAIN• COMPARATIVE PRICING STARTEGY• QUALITY AND QUANTITY• QUALITATIVE MANAGEMENT

Weakness

• WEAK PROMOTION STRATEGY• LESS CONSUMER PREFERENCE

Opportunities• DEVELOUPMENT OF NEW

PRODUCTS POSSIBLE• A WIDE MARKET STILL TO BE

FULLY EXPLORED• COULD THROW LOCAL

COMPETITORS OUT OF THE COMPETITION

Threats

• COMPETITOR IN FORM OF COCA COLA EQUALLY STRONG

• MORE TIME IN PLANING MAY KEEP TROPICANA OUT OF THE COMPETITION.

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Retail sector wise analysis of Tropicana

Kirana stores• Fast moving product• High profit margins- 12% • PepsiCo offers fringe benefits to the

retailers• Good supply management of the stock• Easy payment facility for stock available

Hypermarkets• Increases distribution network• 13% profit margin per piece• Various discounting facilities offered

upon retailing in hypermarkets• Brand value

Bars & Restaurants• Close to 50% of restaurants, bars did

not stock the new variants.• - Business Standard

Hotels• Less profit margin in comparison to

fresh juice• Hotels customers prefer fresh juice

and not juices with preservatives or additives.

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SURVEY ANALYSIS OF TROPICANA’S POSITIONING

IN DIFFERENT RETAIL SECTOR

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COMPETITIVE PROFILE

• REAL--Targeting every section of

society

• TROPICANA -- Targeting youngsters

• MINUTE MAID-- Facing tough competition from others

• OTHERS-- Compromise with Quality but nominal price

real47%

tropicana35%

minute maid15%

others3%

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SPATIAL CONVINCE

30%

30%

15%

25%

REAL

TROPICANA

MINUTE MAID

OTHERS

SPATIAL CONVINCE

Spatial convince: The area provided by the retailer to the product on shelf.

• Real and Tropicana provides almost equal profit margins.

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Ratings Real

Available in lower

segment so high

consumption

Minute maid

Facing high competition

from other products

Tropicana

Have good hold in upper

segments of consumers

survey analysis

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2

3

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5

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real minute maid tropicana others

PRODUCT

RATI

NGS

Series1

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Tropicana’s Retailing Strategy• Tropicana in India since 1988- slow mover; as company opted for a Selective distribution

strategy.

• Cornerstone of Tropicana’s success- Controlled Distribution Strategy and tight management of inventory

• Revamped their products to suit the Indian palate.

• Health awareness-The Indian Medical Association (IMA) will now endorse PepsiCo’s Tropicana fruit

juices-“partnership for health”!

• Diversification of portfolioLaunch of 'Tropicana Twister’ - customer targeted young generation.Under Tropicana Tropics-introducing new flavours i.e. mango nectar, guava pulp

and litchi juice- tickling the Indian taste buds.

• Good Planning and advertising– Get “People to Product”

Mixing modern and traditional trade via trial generations, TV, radio, outdoors and consumer-trade promotion.

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ANSOFF’S MARKET EXPANSION GRID

EXISTING PRODUCT NEW PRODUCT E x I s T I N G C U S T O M E R

N E W C U S T O M E R

MARKET PENETRATION

Tropicana penetrated the market by introducing various fruit drinks like oranges , apple etc .

It was mainly to cater the students and younger generations .

PRODUCT DEVELOPMENT

Tropicana premium Gold will soon be rebranded as Tropicana 100%

It is to communicate the health attributes of a brand more clearly to customers.

MARKET DEVELOPMENT

Tropicana has entered into an agreement with INDIAN MEDICAL ASSOCIATION for endorsement of its products.

DIVERSIFICATION

Carbonated drinks were the main product.

Started manufacturing fruit drinks and fruit juices to cater the health cautious customers.

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CONCLUSIONTropicana’s Marketing Mix Suggestion

1. PRODUCT- Realization!• Apt diversification of the products2. PRICE – Attention needed!!!• On combining of products and services- special offers and promotions3. PROMOTION- Great success achieved!• Sales bound to increase- excessive publicity of Tropicana-IMA deal4. PLACE- Focus on the presence of brand in public forums!• Tropicana should sponsor events i.e. Management meets in B-schools5. PACKAGING- Twister packaging is glamorous and a hit!• Tropicana juice needs repackaging- retention of the brand along with the bottles6. POSITIONING- Toot Padega Fruit!• Designing Tropicana’s strong presence- every recreational center, educational institutions,

hospitals, corporate meets• Labor on the idea: “ Wholesome Drink- TROPICANA ONLY!”7. PEOPLE- "got the right people on the bus, and the wrong people off the bus." –JIM COLLINS• Recommended Area Sales Manager’s meet with the retailers for feedback— “ get the right

people in the right seats on the bus”– Good to Great, JIM COLLINS

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