“Marketing strategy of Frooti in Jharkhand & its Marketing mix

Project submitted

In 

Partial Fulfillment of the Requirements for the Award of Post Graduate Diploma in Management

(Recognized by AICTE)

Dayananda Sagar Business School

Submitted To: Submitted By:

Prof. Parmeswaran sir Ram sevak yadav

DSBSPGDMA09033

Acknowledgement

This research in itself is an acknowledged to the inspiration, drive,

technical assistance contributed to it by many individuals. This research

work would have never been completed without the guidance and

assistance that I received from time to time during the whole research

process.

It is my great pleasure to place a record of sincere thanks and gratitude

to Mr. R. R. Bakshi (general manager) & Mr. Shashi Shekhar

SWASTIK FRUITS PRODUCT PVT. LTD., RANCHI,

JHARKHAND.

I express my sincere gratitude and ineptness to my Internal Guide Prof.

Parmeswaran sir (Faculty-PGDM), Dayananda Sagar Business

School, Bangalore for giving me an opportunity to enhance my skill in

the field of my project.

RAM SEVAK YADAV

DSBSPGDMA09033

Declaration

I Ram sevak yadav , declare that this project report entitled

“marketing strategy of frooti in Jharkhand & Its marketing mix ” is an

original piece of work done and submitted by me towards partial

fulfillment of my Post Graduate Diploma in Management , under the

guidance of “ R.R.Bakshi (GM of frooti)& Parameswaran sir (faculty

of PGDM)

Date:

Place: Ranchi Signature

C O N T E N T S

Sl. No. Topic

1) CERTIFICATE

2) DECLARATION

3) ACKNOWLEDGEMENT

4) CHAPTER – I

Introduction

Scope of project

Objective of project

Hypothesis

5) CHAPTER – II

Company profile

Industry profile

Beverage preparation section

Sidel section Marketing strategy

Marketing Mix

6) CHAPTER – III

Research Methodology

7) CHAPTER – IV

Marketing survey & Data Analysis

Testing of Hypothesis

8) CHAPTER – IV

SWOT Analysis

Recommendations

Suggestion

9) CONCLUSION

10) LIMITATION

11) BIBLIOGRAPHY

12) QUESTIONAIRE

CHAPTER- I

INTRODUCTION

A soft drink is a beverage, often carbonated, that does not contain alcohol.

(Carbonated soft drinks are more commonly known as soda, pop, tonic, or soda

pop in parts of the United States and Canada, or fizzy drinks in the U.K.;

sometimes called minerals in Ireland) The name "soft drink" specifies a lack of

alcohol by way of contrast to the term "hard drink". The term "drink", while

nominally neutral, often carries connotations of alcoholic content. Beverages like

colas, sparkling water, iced tea, lemonade, squash, and fruit punch are among the

most common types of soft drinks, while hot chocolate, hot tea, coffee, milk, tap

water, alcohol, and milkshakes do not fall into this classification. Many carbonated

soft drinks are optionally available in versions sweetened with sugars or with non-

caloric sweeteners

SCOPE OF PROJECT

1. Detailed study of the noncarbonated soft drinks industry in India

2. Analysis of Frooti’s performance against the other prevailing

noncarbonated soft drinks brands in the country.

3. Analyzing consumer perception based on various parameters such as

purchase frequency, effect of sales promotion schemes, brand attributes and

consumer loyalty, packaging ,

OBJECTIVES OF THE PROJECT

1. To study the taste and preferences of the  consumer

2. To study the marketing strategy of frooti in jharkhand.

3. To study the marketing mix  of Frooti

4. To study the market share of Frooti in the non-Carbonated Soft

Drink (NCSD) category

HYPOTHESIS1.

A. Null Hypothesis

H0=Fruit Drink is the preferred attribute which customers look for in Frooti

B. Alternate Hypothesis

H1 = Fruit Drink is not the preferred factor for which customers looks in Frooti

2.

A. Null Hypothesis

H0 = frooti is a child drink

B. Alternate Hypothesis

H1= frooti is not a child drink

3.

A. Null Hypothesis

Ho = Frooti is readily available

B. Alternate Hypothesis

H1= Frooti is not readily available

COMPANY PROFILE

A House Of Diversified Excellence

The SWASTIK GROUP established in the year 1961 is one of the leading trading houses in eastern India. With a diversified activities it is also engaged in the providing engineering, management and financial consultancy services in the field of infrastructure development from the concept to commissioning. As a trading company engaged in catering the requirement of Mining, Construction Power Plants, Forging, Casting and Export Etc. SWASTIK GROUP has played a significant role in the development of Indian Industry and Infrastructure Projects. We at SWASTIK aim to provide most effective and prompt after sales services for the equipments sold by us through trained personnel and after sales services for the equipment sold by us through manufacturing plant-trained personnel and experts.

CHAIRMEN'S MESSAGE

We at SWASTIK GROUP are committed to give our customers the best possible products & services at most competitive prices as per agreed standards and within the stipulated time frame, to their entire satisfaction.

We shall strive relentlessly towards a Zero-defect culture through the commitment of each and every member of our Company.

And of course, we shall not stop there, but keep on going………….

Hanuman Sarawgi(Chairman)

VISION

To be known and identified as an ethical, trust worthy and dependable company relied upon by clients, offering real and lasting solutions at an affordable cost.

OBJECTIVE

To be partners in progress by assisting our clients in optimizing their potential to achieve corporate goals by offering “THE SOLUTION”.

PROMOTORS

HANUMAN SARAWGICHAIRMAN

SWASTIK GROUP OF COMPANIESSWASTIK HOUSE, GANDHI CHOWK,UPPER BAZAR, RANCHI - 834001JHARKHAND.

Born at Ranchi in a respectable Jain (Agarwal) family. He had his education in Ranchi Zila School & St. Xavier's College, Ranchi. He played a significant and important role in organizing and managing large number of Educational, Cultural, Social, Medical, Service, Sahitya, Art & Trade Organizations.

He has received many recognition, citations & Awards including SAMAJ RATNA, Hony. Degree of D.R.Lit.

BISHWANATH SARAWGI

DIRECTOR

Mr. B. N. Sarawgi is B.E, FIPE, FIE and since 1976 he is with the group as Senior Director. He has 30 years of experience in project marketing. He has excelled as a consultant in engineering projects in the Indian sub continent.

E-Mail:- bns@sarawgi.in

BINOD SARAWGI

DIRECTOR

Mr. Binod Sarawgi is B.Com., LLB and is Director of the group company. He has experience of more than 28 years in marketing and administration. He is responsible for group activities in mining and construction, power plants, electrical equipments and the export business.

E-Mail:- binod@sarawgi.in

BINAY SARAWGI

DIRECTOR

Mr. Binay Sarawgi is B. Sc. is having 22 years of experience with the group and is responsible for the general administration, finance and trading activities of the group Companies. He is also responsible for the franchise units of Frooti, Appy Fizz and Bailey mineral water.

Mr. Binay Sarawgi was born on 25th April 1964 at Ranchi in a respectable Jain (Aggarwal) family.He is the youngest son of Shri Hanuman Sarawgi, a renowned Philanthropist and a well known social leader. He completed his education from St. Xavier's School and Ranchi College, Ranchi

RICHA SARAWGI

DIRECTOR

Richa Sarawgi has an M. Sc. International Business Management degree with 3 years of total experience including 6 months of experience in exports. Currently she is assisting in the infrastructure projects at Madhya Pradesh and Bihar apart from managing Business Development.

richa@sarawgi.in

Frooti Bailley Appy fizz

The SWASTIK GROUP renders services in the form of Consultancy. Supply of Equipments and Spares, Erection and Commissioning and operation in the following fields:

Aditya Sarawgi

DIRECTOR

Mr.Aditya Sarawgi is an MBA from the University of Wales Institute, Cardiff (UK). After completing his masters in Feb 2009, he joined the family business and is responsible for various group activities. E-Mail:-

aditya@swastikgroup.co.in 

Swastik Aqua Ltd.

Swastik Coke Pvt. Ltd.

STI Marketing Pvt. Ltd.

Swastik Global Pvt. Ltd.

Swastik Softech Pvt. Ltd.

Swastik Overseas Pvt. Ltd.

Swastik Forgings Pvt. Ltd.

Swastik Fruits Products Ltd.

Swastik Trades & Industries

Powermech (India) Pvt. Ltd.

High-Point Rendel (India) Ltd.

PRODUCT

The Group is engaged in the manufacturing Mango Drink, Appy Fizz (Carbonated) & Bailey Packaged Drinking Water as a Franchisee of World Renowned Parle Agro Private Limited. Two state of the Art Units have been commissioned at Tatisilwai Industrial Area, Phase-II, Ranchi for catering the requirement of Bihar and Jharkhand in particular with a net-work of over 250 Distributors and 25000 marketing points.

 

Aditya Sarawgi

DIRECTOR

Mr.Aditya Sarawgi is an MBA from the University of Wales Institute, Cardiff (UK). After completing his masters in Feb 2009, he joined the family business and is responsible for various group activities. E-Mail:-

aditya@swastikgroup.co.in 

PRODUCTS

1. FROOTI:

It is the flagship brand of swastik fruits product Pvt Ltd (franchise 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. APPY FIZZ:

An apple drink from swastik franchise of Parle , it’s 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, Apply spells style and exclusiveness which makes it a party favorite in the upper crust of

Aditya Sarawgi

DIRECTOR

Mr.Aditya Sarawgi is an MBA from the University of Wales Institute, Cardiff (UK). After completing his masters in Feb 2009, he joined the family business and is responsible for various group activities. E-Mail:-

aditya@swastikgroup.co.in 

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.

WHY FROOTI:

Soft drink market can be divided into two categories:-Carbonated soft drinkNon-carbonated soft drink (NCSD). Frooti is the market leader in the NCSD category with around 60% market share. The NCSD market is growing but there is intense competition among the various segments in this market. The market share of Frooti in the NCSD category is on the decline because of the Fruit Juice Segment, which is increasing at the rate of 20% per annum along with the sluggish growth of the Fruit drink segment. To counter this onslaught, Frooti has introduced PET bottle packing in 200 ml, 500 ml and 1000 ml and Tetra-pack packing in 65 ml quantity. Therefore, we have taken up this project to suggest recommendations to swastik to increase the share of Frooti in NCSD category and to study the market response of the new packaging of Frooti.

ABOUT FROOTI:

Mango - India’s national and most premium fruit was a virtually untapped segment until the year 1985, which saw the launch of Frooti Mango in a trendy convenient tetra-pack. Frooti Mango is swastik franchise of Parle Argo’s flagship brand and India’s leading fruit drink with an 85% market share. Now, Frooti also comes in PET bottle packing.Frooti is like an Indian ambassador and is a hot favorite not only in India but all across the world. Frooti is the first tetrapak fruit juice in India. Launched in 1984, Frooti still holds a dominant position in the Rs300 crore tetrapak fruit juice (TFJ) market.Frooti over these years have carved out a niche for itself in the market. Frooti instantly caught the fancy of Indian consumer with its tetrapak and some smart campaigns. Initially the drink was positioned as a kids drink. The product was perceived as a healthy fruit drink by

Aditya Sarawgi

DIRECTOR

Mr.Aditya Sarawgi is an MBA from the University of Wales Institute, Cardiff (UK). After completing his masters in Feb 2009, he joined the family business and is responsible for various group activities. E-Mail:-

aditya@swastikgroup.co.in 

the mothers . So within a short span of time ,the brand was an alternative to the “unhealthy” colas. The tetrapak had other benefits also . Fruit juice is a perishable product and tetrapak have extended the shelf life of Frooti because tetrapaks have 2 layers of paper and a plastic coating that ensured tamper proof and enhanced shelf life. Lured by the success of Frooti, there were a lot of new launches in the TFJ market. Players like Godrej with Jumpin, kissan etc tried their luck in this market but failed to dislodge Frooti. 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 nine tees the brand was facing stagnated sales. The company tried to excite the market with an orange and pineapple variant but both the variant bombed. The came 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 between16-21. The positioning changed to be more fun based. The package also changed. 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 is basically a nectar based drink so it is not 100% fruit juice, it also have some preservatives added to increase the shelf life. Although Frooti did not face much competition in the category it created, competition came from a slightly different category, 100% fruit juices. Parle saw the emergence of the “ 100% fruit drink market and launched “Njoy” brand but it did not clicked. Parle could have extended Frooti to this market also .The brand Real from Dabur is the main player in this category. Real effectively positioned itself as a premium healthy drink for adults. Frooti was not able to appeal to adults and was considered as a mango drink while Real is not restricted to any flavour. Frooti also changed its positioning statement from ‘ Fresh-N-juicy” to “ Juice Up your life” which have not clicked with the customers. Although Frooti enjoys a commanding (75%) market share , Frooti is facing stagnation. May be some serious steps should be taken to increase the usage of the product. The launch of PET bottle Frooti is a step in this direction. Recently Frooti also launched a “Green

mango” variant just to create some hype in the market. Frooti may have to reposition itself again to appeal to cola drinkers.

INDUSTRY PROFILE

NON-CARBONATED SOFT DRINK INDUSTRY

IN INDIA

AN OVERVIEW : The non-carbonated SOFT DRINK (NCSD) sector can be classified as Fruit drinks, Nectar and Juices. The classification is based on the percentage of the fruit pulp content in the beverage. Fruit drink has to have minimum fruit pulp content of 10%, while Nectar needs to have a minimum fruit pulp content of 25%. The total size of the branded non-carbonated beverages in the organized segment is estimated at Rs.500 crores. The Fruit drink segment is estimated at Rs.250-300 crores, while the Juice market (Branded & Packaged) is estimated at Rs 150 crores. Nectar is a small category of around Rs 35-50 crores. In the fruit drink category, Parle’s Frooti, Godrej’s Jumpin and Coca-Cola’s Maaza and Pepsi’s Slice are the major brands. In the Nectar segment, the key national players are - Dabur, Godrej Xs and Parle’s Appy fizz . The two key national level players in the juice segment are Tropicana and Real. Real is the market leader with 55-60% market share. Tropicana has an estimated share of 30-35%. Several local / regional brands also exist, besides a huge unorganized sector. The Juice category is the fastest growing segment at present, estimated to be growing by 20-25% p.a. The fruit drinks category has also been witnessing growth of around 5% p.a.The main reason for this growth in the NCSD Category is the change of the consumer preference from the carbonated to the non-carbonated soft drink sector mainly due to increasing Health Awareness among consumers and the Pesticide issue relating to Coke and Pepsi. In the Fruit Drink segment, Frooti is the clear market leader with around 85% market share but in the NCSD category as a whole, its share has been declining because of the growth in Fruit Juice segment.So, with the growth of

the NCSD category, Frooti has to compete with all the segments in this category to take a larger share of this growth.

These are the category of the non carbonate soft drink

Non-Carbonated Soft

Drink

Fruit Juice

Category

Fruit Drink

Category

Fruit Nectar

Category

Major Players

Real

Tropicana

Major Players

Frooti

Jumpin

Slice

Maaza

Mango sip

Major Players

Appy fizz

COMPETITORS:

These are the main competitor of the frooti :-

1. Maaza

2. Slice

3. Real

4. Mango sip

5. Real

6. Tropicana

We are not taking into account the nectar segment as it constitutes a

small part of the NCSD category and also, the growth is very sluggish

in this segment. Mango sip mazza and slice is main competitor

What is marketing? Marketing is the process by which companies create customer interest in

products or services. It generates the strategy that underlies sales techniques,

business communication, and business development. It is an integrated process

through which companies build strong customer relationships and create value for

their customers and for themselves.[1]

Marketing is used to identify the customer, to keep the customer, and to satisfy

the customer. With the customer as the focus of its activities, it can be concluded

that marketing management is one of the major components of business

management. Marketing evolved to meet the stasis in developing new markets

caused by mature markets and overcapacities in the last 2-3 centuries. The

adoption of marketing strategies requires businesses to shift their focus from

production to the perceived needs and wants of their customers as the means of

staying profitable.

What is marketing strategy?

Marketing strategy is a method of focusing an organization's energies and

resources on a course of action which can lead to increased sales and dominance of

a targeted market niche. A marketing strategy combines product development,

promotion, distribution, pricing, relationship management and other elements;

identifies the firm's marketing goals, and explains how they will be achieved,

ideally within a stated timeframe. Marketing strategy determines the choice of

target market segments, positioning, marketing mix, and allocation of resources. It

is most effective when it is an integral component of overall firm strategy, defining

how the organization will successfully engage customers, prospects, and

competitors in the market arena. Corporate strategies, corporate missions, and

corporate goals. As the customer constitutes the source of a company's revenue,

marketing strategy is closely linked with sales.

Marketing strategy of frooti in jharkhand

SKU strategy

The company is looking at larger pack formats and will focus on a well planned

SKU (stock-keeping unit) strategy to addresses ‘on-the-go’ as well as ‘in-home’

consumption for Frooti. Among recent introductions have been a one-litre,Pet and

1 pack to cater mainly to in-home consumers and families who prefer staggered

consumption. A 500 ml PET bottle priced Rs 25 is another new launch, targeted at

on-the-go consumers. Prices of the brand in various SKUs range from Rs 3 for a 65

ml pack to Rs 60 for the 1500 ml pack.

Frooti in tetrapak

Parle Agro’s Frooti is the leading brand in the tetrapak fruit drink market. The

brand witnessed declining sales and started losing its appeal due to increased

competition. To revive the sagging sales and appeal of the brand, Parle Agro

decided to relaunch the brand with new positioning and packaging. The case let

discusses about Parle Agro’s design and implementation of the brand prelaunch

exercise for Frooti. It provides a detailed description of the advertising strategy

followed by the company to promote the brand that involved a teaser advertising

campaign revolving around a faceless character 'Digen Verma'.

Frooti is 100 % juice

Parle Agro has entered the 100-per cent pure juice category with mango Juice. The

brand frooti was unveiled by Nadia Chauhan, director, Parle Agro, in Mumbai.

Targeted at the fast growing segment of consumers who are moving towards 100

percent juice, .Creative land Asia has designed the design and packaging of the

juice brand.

Frooti has deliberately kept the packaging like mango color, with a view towards

standing out on retail shelves. The launch campaign (frooti) of the product will

involve print advertising, point of purchase promotions and internet. ''Most juice

brands do not communicate clearly whether they are nectar, 85-per cent juice or

100-per cent pure juice, who oversees sales, marketing and product development at

Parle Agro. "Consumers are confused with what they are buying. Only 100 per

cent juice is pure juice .frooti Juice is 100 per cent juice."

Brands like Frooti and Appy fizz Classic that have established themselves as

market leaders in their respective categories, Parle Agro's decision to enter the 100-

per cent juice category is in line with the its strategy to have presence across all

beverage categories

Direct selling to retailer

Frooti is very famous product in Jharkhand among child, young. and women .

According to my survey I found that company is direct selling product to retailer .

tatisilwai is the manufacturing center of frooti .it is developing under swastik fruits

product pvt ltd (swastik is the franchise of parle agros ) kokar is the main

distributing center of the company from where company is direct selling all

product to retailer .employee of the swastik is selling product in every area in the

Ranchi. Every sales man of the company go to retailer and they are selling product

with their own experience and company have many sales officer who is very

sincere and honest. All the employee of the company is giving hundred effort for

customer satisfaction.

Company have around two hundred employees for Jharkhand area .there

Two main distributing center of company in Jharkhand one is in Ranchi and

another one is in Jamshedpur (Tata). And one dippo in Patna (Bihar)

Product has huge demand in Bihar and Jharkhand. Supply chain management is

excellent in Bihar` and Jharkhand

Company has many distributer and super distributer in bihar and Jharkhand

MARKETING MIX

What is the marketing mix?

The marketing mix is probably the most famous marketing term. Its elements are

the basic, tactical components of a marketing plan. Also known as the Four P's, the

marketing mix elements are price, place, product, and promotion.

The concept is simple. Think about another common mix - a cake mix. All cakes

contain eggs, milk, flour, and sugar. However, you can alter the final cake by

altering the amounts of mix elements contained in it. So for a sweet cake add more

sugar!

graph

Marketing decisions generally fall into the following four controllable

categories:-

1. Product

2. Price

3. Place (distribution)

4. Promotion

The term “marketing mix” became popularized after Neil H. Borden

published his 1964 article, The Concept of the Marketing Mix. Borden

began using the term in his teaching in the late 1940’s after James

Culliton had described the marketing manager as a “mixer of

ingredients”. The ingredients in Borden’s marketing mix included

product planning, pricing, branding, distribution channels, personal

selling, advertising, promotions, packaging, display, servicing,

physical handling, and fact finding and analysis.E. Jerome McCarthy

later grouped these ingredients into the four categories that today are

known as the 4 P’s of marketing, Product, price, place and promotion.

These four P’s are the parameters that the marketing manager can

control, subject to the internal and external constraints of the

marketing environment. The goal is to make decisions that center the

four P’s on the customers in the target market in order to create

perceived value and generate a positive response.

PRODUCT DECISIONS :

The term “product” refers to tangible, physical products as well as

services. Here are some examples of the product decisions to be made:

1. Brand name

2. Functionality

3. Styling

4. Quality

5. Safety

PRODUCT:

A product is anything that can be offered to a market to satisfy a want or

need.

India’s first real fruit drink in a Tetra Pak is available in - Frooti Mango,

Green Mango. Frooti Mango is from premium Indian Mangoes. Frooti has

also been introduced in PET bottle packing. Mango Frooti contains vitamin

A which is essential for eye sight, growth and healthy skin. Frooti is a

delicious and refreshing ready to serve fruit beverage.

Frooti comes in Fruit drink segment of NCSD category (NON-

CARBONATED SOFT DRINK).

Frooti is available in following quantities:-

65 ml (only Tetra pack packaging)

200 ml (only pet Bottle)

500 ml (only PET Bottle)

1000 ml (only PET Bottle)

1500 ml (pet bottle)

Hence, we can see that Frooti has got a very large quantity basket .

PRICE DECISIONS :

Some examples of pricing decisions to be made include:

1. Pricing strategy (skim, penetration, etc)

2. Suggested retail price

3. Volume discounts and wholesale pricing

4. Cash and early payment discounts

5. Seasonal pricing

6. Bundling

7. Price flexibility

8. Price discrimination

PRICE:

TETRA PACK PACKAGING

QUANTITY PRICE (Rs.)

65 ml 3.00

PET BOTTLE PACKAGING

QUANTITY PRICE (Rs.)

200 ml 12.00

500 ml 25.00

1000 ml 45.00

1500 ml 60.00

In order to maintain its position as a market leader, Frooti is

offering its product in different quantities and prices depending upon

the consumer requirements, preferences and income-levels.

As we can see from the above table, Frooti’s new 65 ml packaging is

priced at Rs 3.00 only, targeting the lower income-group and it has

also been introduced in PET bottle packaging as it is more cost-

effective as compared to Tetra-pack packaging to become more

competitive in the market.

DISTRIBUTION (PLACE) DECISIONS:

Distribution is about getting the products to the customer.

Some examples of distribution decisions include:

1. Distribution channels

2. Market coverage (inclusive, selective, or exclusive distribution)

3. Specific channel members

4. Inventory management

5. Warehousing

6. Distribution centers

7. Order processing

8. Transportation

9. Reverse logistics

PLACE:

Frooti is the highest distributed brand in Fruit drink segment with an

85% market share in India. Frooti reaches more than 10 lakh retail

outlets through more than 1500 distributors and wholesalers directly

and indirectly. This is borne out by Parle Agro winning the Beverage

Industry award for the Best Managed Supply Chain 2002 and the

Highest Retail Availability in the year 2002. Frooti’s excellent

distribution system has already been proved in our market survey and

analysis where 90% of the respondents agreed that Frooti is readily

available to them. In the Jharkhand,bihar and orisa frooti is running

under the swastik fruits product Pvt Ltd. Ranchi, Jamsedpur(Tata) and

Patna is the main distribution center of frooti in Jharkhand and Bihar

PROMOTION DECISIONS:

In the context of the marketing mix, promotion represents the

various aspects of marketing communication, that is, the

Communication of information about the product with the goal of

generating a positive customer response.

Promotion decisions include:

1. Promotional strategy (push, pull, etc)

2. Advertising

3. Personal selling & sales force

4. Sales promotions

5. Public relations & publicity

6. Marketing communications budget

PROMOTION:

In a strategic move, swastika product Pvt Ltd is revamping its

marketing plans in a bid to promote its flagship brand ‘Frooti’ in the

overcrowded category. In fact, the company has taken a different

marketing route by launching a host of new retailing and packaging

initiatives to pump up volumes. five years ago, Parle Agro introduced

a mysterious character called ‘Digen Verma’ and created a hype

around this person through an aggressive outdoor campaign which was

quiet a success. Parle Agro had introduced two characters called Froo

and Ti on every 200 ml pack of Frooti as part of its retailing initiative.

These two characters are being displayed on the packs of the drink.

And through tongue twisters, puzzles and various interactive games,

the characters are entertaining the children as well as increasing their

knowledge about famous personalities and current affairs. These two

characters are very different in nature. While Froo is an affable girl

who is good at studies, Ti is a naughty boy who keeps running after

Froo to get his home-work done. With this move, the company expects

to share various activities of its target audience--kids. Recently, Frooti

was introduced in a new tetra pack packaging in 65 ml quantity which

is priced at Rs 3.00 each

CHAPTER- III

METHODOLOGY:

A) DATA COLLECTION

1) Primary Source

Retailers

Consumers

2) Secondary Source

Website

Magazines and Newspapers

B) RESEARCH INSTRUMENTS

Questionnaire

Personal interview

C) SAMPLING PLAN

1) Sampling Unit: Who is to be surveyed?

Urban Consumers

2) Sample Size: How many people to be surveyed?

100 Units (of all age groups)

3) Sampling Procedure:We have taken sample from following areas:

1) Ranchi main Road

2) Kantaoli

3) Harmu

4) Doranda

5) Kanke Road

6) Ratu Road

7) Bariyatu & Morahabadi

8) Namkom

9) Hatia

10) Itki

11) Tatisilwai

12) Argora

CARBONATED DRINK

FRUIT DRINK

80 %

12 %

CHAPTER- IV

MARKET SURVEY AND ANALYSIS

PREFERENCE OF CONSUMERS

INFERENCES

1. The consumers are becoming more health conscious.

2. The market share of NCSD is growing.

NO

YES

CAN’T SAY

57%

18%25%

3. Great opportunity for Frooti to capture this growing market .

IS FROOTI A HEALTH DRINK?

Consumer will perceive any drink as a health drink if he / she think

drinking it will benefit his / her health.

This diagram shows the percentage of respondents who perceive Frooti

as a Health Drink.

INFERENCES

1. Frooti is not perceived by the majority as a health drink.

2. Health drink consumers should be targeted.

CONSUMER AWARENESS REGARDING VARIOUS FLAVOURS

OF FROOTI.

MANGO70%

GREEN MANGO FLAVOURS 23%

OTHERS 7%

MANGO

INFERENCES:

1. This diagram shows the percentage of respondents who are aware

about the various flavors of Frooti.

2. Less promotion of green mango flavor.

YES 77%

NO 23%

3. Less acceptance of green mango flavor among consumers .

SHOULD FROOTI COME IN OTHER FLAVOURS?

INFERENCES:

1. This diagram shows the percentage of respondents who think that

Frooti should come in other flavours.

WHICH FLAVOURS?

ORANGE APINE APPLE

GRAPE OTHER 0%

5%

10%

15%

20%

25%

30%

35%

40%

40%

32%

20%

8%

OTHER GRAPE APINE APPLE ORANGE

INFERENCES:

1. In other flavours, consumers have gone for strawberry and

lemon.

2. Consumers want Frooti in other flavours.

3. Huge market in flavours other than Mango.

4. Other than Mango, Orange and Pineapple are the most preferred

flavours.

IS FROOTI A CHILD DRINK?

NO21%

YES68%

CANT SAY11%

SALE

INFERENCES:

1. Frooti is more of a family drink rather than a child drink.

2. Frooti has market in all age-groups.

IS FROOTI READILY AVAILABLE?

YES90%

NO10%

Chart Title

INFERENCES:

1. This diagram shows the percentage of respondents who think

Frooti is readily available.

2. Good distribution channel of Frooti.

3. Good demand for Frooti in the market.

CHOICE OF CONSUMER

MAAZA 25%

SLICE 20%

FROOTI 40%

MANGO SIP10% 5%

Chart Title

INFERENCES:

1. Emergence of Real as Frooti’s main competitor.

2. Growing threat to Frooti’s leadership in NCSD category.

3. Increasing consumer preference towards Fruit juice segment.

EFFECT OF PROMOTIONAL SCHEMES ON CONSUMER:

INFERENCES:

1. This diagram shows the percentage of respondents whose buying

behavior is influenced by promotional schemes.

2. Consumers are attracted towards promotional schemes.

3. Buying decision of consumer can be changed through consumer

schemes.

YES NO MAY BE 0%

5%

10%

15%

20%

25%

30%

35%

40%

Chart Title

YESNOMAY BE

VALUE FOR MONEY

Value for money means the real value of the product in relation to the

price of the product.

` FROOTI MAAZA SLICE MANGO SIP0

5

10

15

20

25

30

35

40

45

50

FROOTIMAAZASLICEMANGO SIPColumn1

INFERENCES:

This diagram shows the satisfaction the consumer derives by consuming the

product in terms of money in a 1-5 point scale given on the y-axis of the

diagram.

(1 indicating BEST and 4 the WORST).

CONSUMER AWARENESS REGARDING

PACKAGING OF FROOT

PET

YES 80%

NO5%

CANT SAY 15%

YES

YES 83%

NO4%

CANT SAY 13%

TETRA PACK

INFERENCE

1. Consumer is well aware of packaging of Frooti

CONSUMER AWARENESS REGARDING AVAILABILITY OF VARIOUS QUANTITIES OF FROOTI .

YES 70%

NO25%

CANT SAY 5%

200 ML

YES 50%NO

39%

CANT SAY 11%

65 ML

YES 50%NO

43%

CANT SAY 7%

500 ML

YES 49%NO

42%

CANT SAY 9%

1000 ML

INFERENCE:

1. As Frooti in 65 ml quantity was recently introduced and half of

the respondents know about it, this shows good promotion and

good initial demand for new packaging.

CONSUMER PREFERENCE FOR VARIOUS QUANTITIES OF

FROOTI

65ml 200 ml 500ml 1000ml0

5

10

15

20

25

30

35

25

35

30

10

65ml 200ml

500ml 1000ml

INFERENCES

1. There is good demand for all the quantities.

2. Great demand for 65&200 ml.

3. Introduction of 65 ml was a good move .

CONSUMER RESPONSE FOR THE MOST CONVENIENT

FORM OF PACKAGING

TETRA-PACING 40%

PET - BOTTLE 53%

GLOSS BOTTLE 7%

TETRA-PACING

INFERENCE

1) As Frooti was the first to introduce PET bottle packing in

NCSD category, this shows it was the right move from

convenience point of view.

TESTING OF HYPOTHESIS

Hypothesis 1:

1. Null hypothesis(H0)= Fruit Drink is the preferred attribute which

customers look for in Frooti

2. Alternate hypothesis (H1) = Fruit Drink is not the preferred factor for

which customers looks in Frooti

3. Level of significance= Let 5% be the level of significance in testing the hypothesis Since the test s two tailed test , the value of z = ±1.96

4. Test formula:-

p‾ - pZ=√ {p (1-p)/n}

Where

p= sample proportion (calculated from graph) = 80%

p¯=population proportion (known) = 81%

n= sample size=100

.81-.8Z=√ {.8(1-.8)/100}

=.25

Calculated value Z=.25 falls within acceptance level in +1.96, so hypothesis is accepted.

Conclusion: Customers see the Frooti as fruit drinks

Hypothesis 2:

1. Null Hypothesis (H0)=frooti is a child drink

2. Alternate Hypothesis(H1)= frooti is not a child drink

3. Level of significance= Let 5% be the level of significance in testing the hypothesis Since the test s two tailed test , the value of z = ±1.96

4. Test formula:-

p‾ - pZ=√ {p (1-p)/n}Where

p= sample proportion = 44%

p¯=population proportion = 34%

n= sample size=100

Now

.34 – .44Z=√ {.44 (1-.44)/100}

= -2.01

5. Calculated value is not fall in acceptance level ,so the hypothesis is rejected

Conclusion: The Frooti is not only child drinks, it can be used by adults

Hypothesis 3:

1. Null Hypothesis (H0)= Frooti is readily available

2. Alternate Hypothesis(H1)= Frooti is not readily available

3. Level of significance= Let 5% be the level of significance in testing the hypothesis Since the test s two tailed test , the value of z = ±1.96

4. Test formula:-

p‾ - pZ=√ {p (1-p)/n}Where

p= sample proportion = 90%

p¯=population proportion = 91%

n= sample size=100

Now

.91 – .9Z=√ {.9 (1-.9)/100}

= .33

5. Calculated value is fall in acceptance level, so hypothesis is accepted

Conclusion:

The Frooti is readily available in market

CHAPTER- V

SWOT ANALYSIS:

The overall evaluation of a one’s strengths, weaknesses, opportunities

and threats is called SWOT analysis.

STRENGTHS OF FROOTI :

1. Market leader in NCSD category-60% market share.

2. Innovative - First packaged Mango drink in Indian market, first to

introduce Tetra pack, PET bottle packaging in NCSD category.

3. Quick market responder - Introduced 65 ml packaging to cater

different segments.

4. Frooti has got a very large quantity basket - available in various

quantities like 65 ml, 200 ml, 500 ml and 1 Liter.

5. Efficient distribution network-readily available.

6. Frooti is a health drink - Contains Vitamin A.

7. Frooti has got a strong Brand Equity.

WEAKNESSES OF FROOTI

1. Frooti is not perceived as a health drink. As per our survey majority of our

respondent didn’t consider Frooti has a health drink.

2. Frooti has limited variety of flavour - only mango and green mango.

3. “Frooti means mango”, syndrome in the mind of consumers.

4. Margin given to retailers and distributors is less as compared to its

competitors.

5. The main target audience of Frooti is kids.

6. Frooti has no brand ambassador.

7. No brand expansion - Brand equity of Frooti is not utilized properly.

OPPORTUNITIES FOR FROOTI

1. Huge untapped unorganized sector in NCSD category.

2. Huge untapped market in other flavours - Orange,

Pineapples, Grape.

3. Growing market share of NCSD category.

4. Demographically, in the coming years around 55% of the

population will consist of below 35 years in age, which

should be major target market for Frooti.

5. Increasing health awareness among consumers - As per our

survey 88% of the respondents preferred fruit drink to

carbonated drink.

THREATS FOR FROOTI

1. Decreasing share in NCSD category - Fruit juice segment

consisting of Real and Tropicana is increasing at the rate of 20-

25% per annum as compared to sluggish growth in other segment.

2. Presence of huge unorganized market.

3. High consumer preference for flavours other than mango and

green mango.

4. Competition with global giants - Coke and Pepsi.

RECOMMENDATIONS FOR FROOTI   ON THE

BASIS OF MARKETING MIX

PRODUCT

1. Frooti in Others Flavors :

1. As per our survey, around80% of the respondents want Frooti in

flavors other than mango and green mango like Orange,

Pineapple and Grape.

2. Now, the most striking fact is that Frooti is available in Orange,

like Mumbai and Pune.

3. These flavors are not available in Ranchi and Patna region.

4. Our main competitor MAAZA is available in many flavors like

mango, orange, guava, grape, apple, pineapple and mix fruit etc.

5. So, to compete with MAAZA and other competitors, the present

variants of Frooti in orange, pineapple and strawberry flavor

should be made available all over India.

6. Frooti should also be made available in grape flavor as there is a

great demand for this flavor, especially in the less than 20 age-

group segment.

2. The Appy fizz case

1. Appy fizz is a new product launched by the swastik (franchise of

Parle agro) in Bihar and Jharkhand. It is a nectar drink which

comes in apple flavor.

2. Now the question is that swastik (franchise of Parle agro) has not

used the brand equity of Frooti in branding Appy fizz.

The reasons for this can be: -

1. Appy fizz is a nectar drink and is in a different segment from

Frooti which is in the fruit drink segment.

2. Parle agro is promoting Appy fizz as a lookalike for champagne

drink and is targeting the upper income class consumers.

PLACE :

1. Retail chain of NCSD in India

2. To capture the huge unorganized sector, Frooti should be

promoted as a retailing chain outlet in India on the lines of Main

road which is in the retailing of coffee.

3. This outlet should contain all the variants of Frooti in different

flavours and quantities and it should also be served in glasses.

4. Also, this outlet can be used to provide fresh fruit juices in

various flavours at a very reasonable price. This move will help

frooti to capture a major chunk of the huge unorganized sector

which is more than Rs 500 crore.

5. But, this is a highly risky move and requires lot of capital so,

swastik should first experiment by opening a few outlets.

PROMOTION:    

1. The nutrient content of Frooti should be highlighted on the package so that

the consumer can become more aware and perceive Frooti as a Health drink.

2. The quality standard of Frooti should be approved by a reputed authority or

organization (like ISO series) and this be promoted.

3. Taking the cost consideration into account, swastik can go for more

distributor and retailer margins, as by getting more margins the retailers and

the distributors will promote Frooti more efficiently. It should also provide

more consumer schemes.

4. Swastik can also promote Frooti by providing various offering like

Refrigerators.

BRAND AMBASSDOR FOR THE FROOTI:

1. Frooti is needed to be promoted as a health drink and should

target not only the kids but also the other members of the

family.

2. For this Frooti should project its brand ambassador who will

help consumers perceive it as a health drink.

3. The Brand ambassador should be someone who symbolizes

good health and along with him / her a cartoon character

(someone very popular among kids) should also be introduced

so that Frooti does not loses its current taret audience-kids.

SUGGESTION:

1. Frooti can go for Salman Khan as a brand ambassador as he is

very popular in India and symbolizes good health. (Punch line

can be something like “After gym, have a Frooti”) Along with

him, Frooti should also go for a famous cartoon.

2. Character like Scooby Doo or Pokémon to target the kids and

both of them should feature together in the advertisement.

CONCLUSION:

We can conclude the following :

1. By taking some initiatives, Frooti can compete with the fruit

juice segment comprising of Real and Tropicana, and can

maintain its position as a market leader in the NCSD category.

2. The consumers response to the new packaging (PET botte and 65

ml Tetra pack) of Frooti is positive as shown in the survey .

LIMITATIONS:

1. The corporate office of Parle Agro is situated in Mumbai and so

we could not gather information from there but swastik is a

franchise of frooti.so I collect all information from Ranchi

corporate office of swastika

2. We could not find the reason why Frooti was not introduced in

other flavours like orange, pineapple etc on all India basis (We

sent an E-Mail to the company but didn’t get any reply).

BIBLIOGRAPHY:

1. “Philip Kotler”, Marketing Management, Millennium edition.

2. www.swastik.org.in

3. www.parleagro.com

4. www.netmba.com

5. www.indiainfoline.com

6. www.financialexpress.com

7. Business line.

8. Brand Equity, Economic Times

QUESTIONNAIRE

Dear Sir / Madam:

This questionnaire is part of a market study being conducted by me. The aim of the

study is to analyze the strategies adopted by frooti in the various stages of its

lifecycle.

Any information provided would be used only for academic purpose and kept

confidential.

1. Name:

2. Age:

3. Occupation:

4. Contact No:

5. Do you drink Soft Drinks? Yes / No

6. If yes, which Soft Drinks?

Carbonated Drinks / Fruit Drinks

7. Which fruit Drinks do you like most?

MAZZA

SLICE

FROOTI

REAL

TROPICANA

.

8. Should Frooti come in other flavor? Yes/ No

9. If yes, which flavor?

Orange

Alpine apple

Grape

Other

10.Is Frooti a health drinks? Yes/ No

11.Is Frooti a child drink? Yes /No

12.Is Frooti readily available ? yes/No

13.Do you think advertising influence you to drink Frooti ? Yes/No

14.Which drink give you more value ?

Frooti

Mazza

Slice

Real

Tropicana

Jumping

15.Do you know Frooti is available in many packages? Yes/ No

Pet bottle

Tetra pack

16.Which packages do you prefer most?

Pet bottle

Tetra pack

17.Do you know Frooti is available in many quantities?

65 ml

200 ml

500 ml

1000 ml

1500 ml

20. Which quantity do you prefer most?

65 ml

200 ml

500 ml

1000 ml

1500 ml

21. What is your opinion of the brand?

Excellent

Good

Fair

Poor

23. Would you visit another store X, if you do not find it at your store?

24. Any recommendation, suggestion , you want to give for Frooti for betterment

of product …….

Signature PLACE:-

DATE: