PES Institute of TechnologyDepartment of MBA100 Feet Ring Road, Banashankari Stage III,, Bangalore, Karnataka 560085

Integrated Marketing CommunicationA term paper on

Submitted By, Pooja H Shah 1PT11MBA43Submitted to, Prof Aiswarya S Pradeep Dept of MBA

Introduction

Integrated Marketing Communication

Integrated Marketing Communications (IMC) is defined as customer centric, data driven method of communicating with the customer. IMC is the coordination and integration of all marketing communication tools, avenues, functions and sources within a company into a seamless program that maximizes the impact on consumers and other end users at a minimal cost. This management concept is designed to make all aspects of marketing communication such as advertising, sales promotion, public relations, and direct marketing work together as a unified force, rather than permitting each to work in isolation.

Industry Profile

The beverage industry in India constitutes of around USD 230 million among the USD 65 billion food processing industry. The major sectors in beverage industry in India are tea and coffee which are not only sold heavily in the domestic market but are also exported to a range of leading overseas markets. Half of the tea and coffee products are available in unpacked or loose form. Among the hot beverages manufactured in India, tea is the most dominant beverage that is ruling both the domestic and international market even today.

Introduction to Parle Agro Ltd.MISSION: To provide consumers superior, wholesome agro based food and drink bands through which Parle can build a profitable; growth oriented organization. Parle is a leading Indian Food and Beverage Company, the only Indian transnational giant with the past experience of having successfully launched leading soft drink brands like Frooti, Apply, N - Joi and Bailley. Today its brand portfolio consists of No. 1 brands like Frooti along with Apply, N-Joi and Bailley. Parle agro was the first to identify the dormant mango segment in India and launch Indias first national Mango drink - Frooti Mango. Today Frooti has an 85% market in the Fruit Drink segment. Today, the Parle Group turnover is over Rs.600 crore with group strength of over 1000 employees, including over 400 professionals.

PRODUCTS1.FROOTI:It is the flagship brand of Parle agro. It was introduced in 1985 and it was the first Fruit Drink to be introduced in India.

2.BAILLEY AQUA:It is a mineral water and was launched in the year 1993. It is one of the first brands to get an ISI certification Bailley conforms to stringent BIS Norms. It undergoes 51 quality control tests includes 32 chemical tests, 9 microbiological tests and 10 physical tests and meets international standards laid down by WHO, USFDA, PFA.Parle Bailley Aqua is unique because it has the same consistent taste across India. This is because of the unique purifying processing system, which removes all minerals and salts and puts back only exact premeasured quantities of salts and minerals necessary for the human body. Bailley Aqua is purified with chemical free natural U.V. Treatment. 3.N-JOI:Parle Agro entered the dairy segment with the launch of N-JOI. N-Joi is Indias first real fruit and dairy fresh milk drink. It contains orchard fresh pulp of mango / strawberry and dairy fresh healthy low fat cows milk. Its full of natural goodness and wholesomeness. N-Joi is nutritious filler and a delicious smooth fruit and milk drink. N-Joi Mango with dairy fresh milk and N-Joi strawberry with dairy fresh milk have been rated as the Most Innovative products in the Beverage Industry.4.APPY:An apple drink from Parle, its available in a sleek, international pack. The brand has been positioned as the champagne of apple drinks due to its unique richness of taste. Unlike ordinary apple drinks, Aply spells style and exclusiveness which makes it a party favourite in the upper crust of the society. Apply is made from freshly picked ripe apples sourced from the rich natural environs of Himachal Pradesh. The clear and crisp Apply Nectar is a premium product available in a 200 ml easy to pour pull-tab opening pack.

FrootiFrooti, or Mango Frooti, as it is popularly called, is the largest-selling ready-to-consume mango drink in India. Launched in 1985, it is the flagship product of Parle Agro Pvt. Ltd. When it was launched, it took the country by storm as it was the only beverage sold in an innovative Tetra Pak packaging which was a new concept for Indian consumers.Ever since its launch, Frooti has acquired a large market share and continues to be the most popular mango drink even today. The tagline Mango Frooti - Fresh and Juicy has huge brand recall value for consumers and has helped the brand strengthen and consolidate its position as the market leader.Frooti has been a trendsetter all through its 25 years of existence. From being the first fruit drink in a Tetra Pak, to being the first in a PET bottle, Frooti has innovated all along the way. Frooti as a brand has always tried to evolve with its ever evolving consumers to be relevant to them at all times. This is what really makes Frooti one of the most trusted brands and the most preferred mango drink of India.THE MANGO MANIAThe packaged mango drink comes as the flagship product from Parle Agro, a company which came into existence as one of the three groups born out of disintegration of Chauhan family-owned Parle in 1984. A year later, Parle Agro launched Frooti.From being the first fruit drink in a tetrapak, to being the first in a PET (Polyethylene Terephthalate) bottle, the brand has maintained a leadership position in its category, both in terms of innovation and volume. Not only that, Frootis significance in the growth of Parle Agro is well reflected in words of Nadia Chauhan, Joint Managing Director & CMO, Parle Agro, as she proudly says, Frootis journey has been one of the most successful and fulfilling experiences for us at Parle Agro. Right from its launch in 1985 till this day, Frooti as a brand has set standards, forged memories, created landmarks and made a place in the countrys hearts and minds.Though Frooti as a product has remained same for last 25 years, the brand per se has evolved in its look, positioning and targeting. When Frooti came into existence over two-and-a-half decades ago, it came in as a contemporary and youthful drink. From its communication of early 80s, where pretty girls in mini-skirts sipped Frooti on TV screens, to its recent Why Grow Up TVC, the brand has kept refreshing its communication.Over the years, the brand has also experienced a series of repositioning. The base tagline, however, completed a full circle from Mango Frooti, Fresh and Juicy at its launch to Mango Frooti, Fresh N Juicy now. In between, the brand used different taglines such as Frooti Just like that, Fresh and juicy! What a beauty! Mango Frooti!, and Juice up your Life. The present ad campaigns, focus on Frootis association with mango, while engaging the youth by presenting the brand as trendy and contemporary. The good old days

When Frooti was launched in a green rectangular tetrapak as a ready-to-serve mango drink, it was a first of its kind in India. Since, the packs could be carried easily and conveniently, the packaging played a major role behind making the product popular. The catchy tagline helped the brand gain an unparalleled recall value in the product category, as Chauhan says, One of the reasons, due to which Frooti has been able to maintain its leadership position, is the brands unique ability to change that has kept it true to its essence, Fresh n juicy.The brand, initially was positioned as drink for kids and the product was perceived as a healthy fruit drink by mothers as an alternative to colas. The tetrapak automatically carried benefits like extended shelf life for the fruit juice, which otherwise is a perishable product.According to industry estimates, by year 2000, Frooti had a majority market share of Rs 300 crore tetrapak fruit drink market. However, by that time cola majors like Pepsi and Coca-Cola had also started seriously looking into this drink category. Moreover, with likes of Jumpin and Real, Frooti witnessed heightened competition in its own segment of tetrapak fruit drinks and juices. From kid to adult

It was time for the 16-year-old brand to restructure its marketing strategy. Targeting to kids was not enough, as Parle Agro realised that while most people loved Frooti as kids, when they grew up, they felt Frooti was for a younger lot. There came a thought for revamping the packaging and positioning of the brand.As time changed, says Chauhan, We realised the importance of staying in tune with the expanding young consumers in the country. Based on consumer insights and trend forecasting, we felt the need to innovate the brand.With Frooti tetrapak firmly established in the market, it was time for the brand to expand the consumption occasions and consumer interaction points. Moving ahead, in 2002, Frooti launched its 250 ml, 500 ml & 1 litre PET bottles, becoming the first beverage to be available in a PET bottle. The rationale was very clear. The three SKUs (Stock Keeping Units) were meant to hit three major consumption occasions. The 250 ml for on-the-spot consumption, the 500 ml for on-the-go consumers and the 1 litre PET for in-home consumption.This new packaging format, with rich visible product colour, increased the popularity of the product across all age groups and more importantly made space in the housewives shopping basket for her home consumption needs, says Chauhan.To capture the low-income group segment, Frooti in 2004 launched a triangular Tetra Classic Aseptic (TCA). An affordable branded beverage at Rs 2.50 was unheard of when the pack was launched. Further, the TCA would come in chains and could be strung from anywhere along with chips or shampoo sachets. Because the pack did not require refrigeration, retailing points for the liquid confectionary expanded from tea stalls to fruit shops to even phone booths.Having done enough on packaging, Frooti in 2005, rode on a major task to don a youth look. It started with a new mango look followed by a bright yellow packaging in 2008.Giving its logo a youthful look was something that the brand began as a starting point to connect with the youth. To make this effort more impactful, the brand launched successive campaigns to engage with young and adults. But the brand was equally cautious of the fact that the kid segment still constituted majority of its sales. In our pursuit of finding the acceptance of adults, we couldnt alienate the child. In the summer of 2009, we launched the thought Why Grow Up to turn the problem on its head, while keeping our loyalist kids well within our realm, says Chauhan.The statement Why Grow Up put Frootis communication in a different league from its competitors as the brand established itself as a drink for young-at-heart. It also laid foundation for a long-term strategy and vision for the brand, says Chauhan.

FROOTI LOGO:The Frooti logo has been carefully tweaked to look a little more contemporary while retaining its classic character. The complete metamorphosis will take a little while. OLD NEW

TARGETED MARKET Recreational Fitness Health Lifestyle SportsPRIMARY MARKET KIDS - Fond of fruit juice TEENS - More experimental YOUTH- Experimental & more buying power Working People Women Elderly people

SECONDARY MARKET Travel Industry- Airlines, Railways & local transport systems Recreational- Movie Theatre, Malls etc. TARGET AUDIENCEDEMOGRAPHICS:Primary segment: Children in the age group of 4-12 years, Indian YouthSecondary segment: All adults in section A+B* who love fruit based, non-carbonated drinksPSYCHOGRAPHIC: NEW IMPULSE CATEGORY:The youth segment was targeted with sub-segements:TWEENS (9-12)TEENAGERS (13-19)

65ml- Targeting Low Income Levels 250ml- Handy Bottle- Targeting Teens as Single Serve Pet 250ml- Economical & used in canteens, offices and colleges Frooti Family Size 1Litre Pet- Easy to store in fridge

POSITIONINGIt comes as a really contemporary and youthful mango drink. Frooti was the first brand to introduce fruit drinks in tetra packs to Indian consumers. It was cool to have a Frooti. Even the imagery in Frooti commercials was way ahead of anything else the Indian society was exposed to.Frooti was positioned as a mango drink that is Fresh-n-juicy For over 7 years, the company promoted the product using that famous baseline. The product have tried to create excitement in the market through a series of new variants and packing. But in late ninetees the brand was facing stagnated sales. The company tried to excite the market with an orange and pineapple variant but both the variant bombed. Then comes the experiment with packaging. The YO! Frooti variant came with a slim paper can aimed at the college going youth.Worried by the stagnating sales, Parle tried to reposition the brand to appeal to youth aged between 16-21. The positioning changed to be more fun based. The old green color of the bottle changed to more bright mango color with lot of graphics added to it.

One of the most famous marketing campaigns India have witnessed took place during the repositioning. The campaign is the famous Digen Verma campaign. This campaign was considered as one of the most successful teaser campaigns in India. The campaign lasted for 15 days started in February 2001. The campaign was about a faceless person Digen Verma. There were posters and outdoors all across the markets that had messages like Who is Digen verma Digen Verma was here etc. This created lot of excitement in the market and Digen Verma became the most talked about faceless name at that time. The campaign was executed by Everest communication. But the campaign was not followed up and the hype was not translated to long term brand building.Frooti ads are no longer meant to just create buzz, they are created keeping in mind a long term brand vision. Even the treatment of subject in the ads has also changed. Instead of a story narrated through songs and dance, their new ads are more about situations and showcasing how consumers connect with Frooti.

The Components of the re-launch strategy of Parle-Agro for Frooti:- Extensive market research: - The first thing that Parle-Agro did was conducting detailed market survey. It gave lots of information about the competitors strategies, customer base and psychology and attitudes of the customers towards their products. Defining product category: - Parle defined its product category as the need satisfying category which quenches the thirst and fun to drink. The product form was fruit juice with competitors in the juice category like Tropicana, Jumpin and soft drinks like Coca-Cola, Pepsi and others. Define the target audience: - The youth segment was targeted with sub-segments Pre-teens (9-12), Teenagers (12-15), above teenagers (16-19) which are the new impulse category. The sporty and fun-loving nature of the teens and their hung-out likings were taken into account. Knowledge about the competitor: - Frooti identified the perception of the consumers towards the competitors drink and found that Coca-Cola and Pepsi are soft drinks for youth. It found the vacancy for a soft drink meant for the youngsters and break through the earlier image of Frooti ultimately convince the youth that it was a better alternative than Colas. Differentiation and communication: - Frooti was planning to come up as a fruit drink for youth meant for hang-out purposes. Plan of action for the 4 Ps of marketing- Product- The product will be Tetra-pack Frooti, easy to drink Packaging-The pack had new splash graphics in same signature green & orange colours with Flip top and tagline was changed to Frooti-Just like that. Place- The typical college going crowd hung out at the canteens, Bus-stops, local trains, restaurants etc. so the promotions are to be extensively carried out in these locations as a part of which many popular teenage joints such as restaurants, movie theatres, buses and local trains were flooded with catchy posters asking Where can you find Digen Verma on Saturday nights? or What is Digen Vermas favourite serial? etc. Promotion:- The promotion was done using a national identity Digen Verma who was some sort of a role model whom others could relate to. The campaign was highly innovative and creative so it build a hype over the mysterious character. The campaign included Television commercials, outdoor media campaigns, offline promotions and online advertising campaigns.

ADVERTISING STRATEGYPast Agency:TBWA, Everest, Percept and Grey have handled Frootis advertising earlier.Current agency:Since 2007, the creative duties of Frooti are being handled by Creativeland Asia.

PRODUCT PROMOTIONFrooti is promoted through Television Commercials, Banners and buntings at point of sale, Mobile Display on vehicles, public transport & hoardingsThe early ads of Frooti were all about informing the customer. "Nobody had seen anything like that, where you could punch a straw into the pack and walk away with it. We launched Frooti with a lot of local gimmicks; there were packs of Frooti hanging from trees which people could pluck. In stores standees, promotions were very eye-catching and the curiosity that the pack generated was overwhelming. People who travelled to Mumbai were seen carrying 4-5 cartons of Frooti with them back home. Point of purchase was the singular most important thing for Frooti and the drama we did there got us all the attention. We also did school launches for the brand and every major school in Mumbai stocked Frooti in its canteens," recalls DaCunha.Interestingly, it was the agency that came up with the name Frooti, because the company had considered extending the name to other fruit drinks as well. "Product advertising played a huge role in building the brand, there was a lot of education involved. When it first came out, people mistook it for a soap, we had to tell them to take a straw, pierce it and sip it," says Nadia Chauhan. Furthermore, variants like Yo Frooti, designed with a pullback strip exposing the mouth of the tetrapack instead of the plastic straw, struck a chord with the youth.Over two decades later Frooti is still the leading brand in the mango drink space. In the year 2009, the brand was revamped. "When Frooti came into existence, it came in as a really contemporary and youthful drink. It was cool to have a Frooti. Even the imagery in Frooti communication was way ahead of anything else the Indian society was exposed to. Frooti commercials in early 80s with pretty girls in miniskirts, hula-hoop, use of CG, people diving into a pool of Frooti, etc., was something India hadn't seen before. We realized being cool wasn't alien to Frooti, it was just about reinstating the cool factor," explains Nadia Chauhan.Since its launch Frooti has done many innovations on the packaging and advertising front. While tetra packs established the brand, Frooti was also the first to introduce the drink in PET bottles. In 2003, to increase penetration Frooti created triangle shaped small packs of Frooti priced at Rs 2.50. Called Magic Frooti, the SKU helped the brand gain entry into a large number of markets in interior India doing wonders for the brand. While they are not willing to disclose the figure, Nadia Chauhan says they christened the SKU 'Magic Frooti' because of the wonders it did for the brand sales. Keeping the brand contemporary and relevant in today's times is now the brand's attempt and Nadia Chauhan admits communication alongwith innovations like PET and tetra packs will help the brand to continue being on top.USE OF EMOTION ICONS: Mango Emotions known as Mangoticons are printed in 200ml Frooti packs 21 different mangoticons are available in markets

MANGOTICONS

Ad Campaign by creativeland AsiaIn a departure from a typical 30 second spot with a storyline or a narrative, the ads capture peoples reaction to giant sized props in the form of mangoes which suddenly appear on the streets, rolling down from above a slope.

Billed as an integrated campaign which will involve a live outdoor stunt, on-ground activities, a direct marketing campaign, word of mouth buzz and television spots, besides viral videos, the campaign titled Juicy Mango Surprise Project was repeated across 12 metros and mini metros across the country in malls, schools, colleges and popular youth hang-outs. In the videos, the people who have been played a prank on, are greeted by a Frooti undercover agent who explains the idea behind the stunt and hand them a complementary bottle of Frooti.

Success of a brand is dependent on many factors besides the promotional campaign:- The campaign had been successful in not just evoking interest but also in increasing sales. The customer awareness of brand which it was likely to capture seemed quite phenomenal. The sales were up by almost 30% by investing 30 million on campaign. But somewhere it seemed that Digen Verma was becoming more popular than the product itself, defying the very strategy. The success of a brand is dependent on factors which could be categorized into two segments- controllable and non-controllable. The controllable factors are- Operation/ Production consist of the issues like quality of production, improving high productivity, capacity of production etc. Frooti has to be a quality drink with improved productivity level so that its operational costs were quite low. Marketing(Product Mix, Price, Place, Promotion) has into it factors like need satisfying, quality of product, variants of product, packaging, pack imagery, competitive price, distributors and retailers margin and availability. Frooti as a successful brand should satisfy as a refreshing drink, taste as real mango, available in different pack size and its pack imagery should act as a catalyst for youth segments. Its price should be affordable & comparable with competitors, providing margin and delivered on time. HR/ Finance Department have issues of trained employees and cost minimization. The production cost should be minimized to increase the % of profit to achieve sound profitability in the business.The non-controllable factors are Political-Economic-Legal, Socio- Cultural, Demographic, Physical- Natural, Technological, Customer & Market, Competitors & Industry (Direct and Indirect competition, organized and unorganized sectors). To avoid these Frooti should be an ethical product, fulfilling all the quality certification. Frooti as a youth drink in the market will face direct completion from Coke & Pepsi and indirect competition from Fruit juices, Sugarcane juice etc.