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1

A
MINI PROJECT REPORT
ON

“CONSUMER PREFERENCES OF FROOTI


IN
HYDERABAD & SECUNDERABAD”
&
“MARKETING MIX OF FROOTI ”

SUBMITTED BY:
Manmath Kumar Sahu
Roll No-M2-24
PGDM (Marketing)

UNDER THE GUIDANCE OF


Dr. Harish Sir

Siva Sivani Institute Of Management


2

S.P. Sampathy’s Siva Sivani Educational Society’s


(2906/97)

SIVA SIVANI
INSTITUTE OF MANAGEMENT
(Approved by the All India Council for Technical Education)
S. AARATHY SAILESH SAMPATHY
President & Chief Executive Vice-President &
Dy. Chief Executive

Date:

This is to certify that Mr. Manmath Kumar Sahu has completed the project entitled
satisfaction survey for CONSUMER PREFERENCES OF FROOTI IN
HYDERABAD & SECUNDERABAD”& “MARKETING MIX OF FROOTI
under my guidance and completed , the project successfully, for the partial
fulfillment of the Course: Dissertation in Term – 3rd of the Post Graduate Diploma
in Management - Marketing (Batch: 2007 – 2009).

I wish him all the success.

Project Guide

Dr. K.H.Harish

Date:
3

Declaration

I Manmath Kumar Sahu , declare that this project report entitled “Consumer
preferences of frooti In Hyderabad and Secunderabad & 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 “Prof. Anil Ramesh
, T Suchitra Rani ,Dr. Harish .

Date:

Place: Secunderabad Signature


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Acknowledgement

I take this opportunity to express my deep sense of gratitude to my superiors


Prof. Anil Ramesh , Prof. Suchita Mam and Dr. Harish Sir for their guidance and
other staff of the organization for extending their valuable support and help in the
preparation of this project report.

I am also thankful to my family & friends for extending their co-operation in


completion of this project report.

Date:
Place: Secunderabad Signature
5

CONTENTS
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
• 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
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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.;[1] 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 softdrinks industry in India


2. Analysis of Frooti’s performance against the other prevailing noncarbonated
softdrinks 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 market response to the new packaging of Frooti
introduced by Parle.
3. To study the marketing mix of Frooti
4. To study the market share of Frooti in the non-Carbonated Soft
Drink (NCSD) category
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HYPOTHESIS

1.
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
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CHAPTER-II

COMPANY PROFILE
PARLE AGRO PVT. LTD.
MISSION:
“ To provide consumers superior, wholesome agro based food and

drink bands through which Parle can build a profitable; growth oriented
organization.”
Parlet 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 India’s 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 a group strength of over 1000 employees, including
over 400 professionals.

PRODUCTS
1. 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,
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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
India’s first real fruit and dairy fresh milk drink. It contains orchard
fresh pulp of mango / strawberry and dairy fresh healthy low fat cow’s
milk. It’s 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, 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, 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.

WHY FROOTI:
Soft drink market can be divided into two categories:-
1. Carbonated soft drink
2. Non-carbonated soft drink (NCSD).
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Frooti is the market leader in the NCSD category with around 60%
market share. The NCSD market is growing but there is intese
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 250 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 Parle 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 Parle Agro’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 favourite 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 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 was 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 a 7 years, the company promoted the
product using that famous baseline. The product have tried to create excitement in
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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. 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 between 16-21. 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.
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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. 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
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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.

Non-Carbonated
Soft Drink

Fruit Juice Fruit Drink Fruit Nectar


Category Category Category

Major Players Major Players Major Players


Real Frooti Appy
Tropicana Jumpin X’s
Slice
Maaza

COMPETITORS:
The main competitors of Frooti are as follows:-
1. Maaza
2. Slice
3. Real
4. Tropicana
5. Jumpin
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.
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MARKETING MIX:
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
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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 Tetra pack packaging)
250 ml
500 ml (only PET Bottle)
1000 ml (only 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
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PRICE:
TETRA PACK PACKAGING
QUANTITY PRICE (Rs.)
65 ml 2.50
200 ml 10.00
250 ml 12.00

PET BOTTLE PACKAGING


QUANTITY PRICE (Rs.)
250 ml 10.00
500 ml 18.00
1000 ml 30.00
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 2.50 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
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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 .

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, Parle Agro Ltd is revamping its marketing
plans in a bid to promote its flagship brand ‘Frooti’ in the overcrowded
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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. Three 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 2.50 each
and Parle is promoting it as “5 KA 2 OFFER”, which means 2 packs
for Rs 5.
19

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) KOMPALLY
2) SUCHITRA
3) BOWENPALLY
4) PARADICE
20

CHAPTER- IV
MARKET SURVEY AND ANALYSIS

PREFERENCE OF CONSUMERS

12 %

CARBONATED
DRINK

FRUIT DRINK

80 %

INFERENCES
1. The consumers are becoming more health conscious.
2. The market share of NCSD is growing.
3. Great opportunity for Frooti to capture this growing market.

IS FROOTI A HEALTH DRINK?


21

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.

18% YES
35%

NO

CANT SAY

47%

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.
22

100% 97%

80%

60% MANGO

40% GREEN MANGO


23% FLAVOURS
20%
7% OTHERS
0%
MANGO GREEN OTHERS
MANGO
FLAVOURS

INFERENCES:
1. This diagram shows the percentage of respondents who are aware
about the various flavours of Frooti.
2. Less promotion of green mango flavour.
3. Less acceptance of green mango flavour among consumers.
SHOULD FROOTI COME IN OTHER FLAVOURS?

NO
23%

YES
77%

INFERENCES:
1. This diagram shows the percentage of respondents who think that
Frooti should come in other flavours.
23

WHICH FLAVOURS?

40%

35%

30%

25%

OTHER
20% GRAPE
36% APINE APPLE
33%
15% ORANGE

23%
10%

5%
8%

0%
ORANGE APINE APPLE GRAPE OTHER

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 .
24

IS FROOTI A CHILD DRINK?

CHILD
CHILD DRINK 44
DRINK 52 %
%

YOUTH
DRINK
7%

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?

10%

YES
NO

90%

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.
25

CHOICE OF CONSUMER

MAAZA
SLICE
FROOTI
REAL
TROPICANA

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.
26

EFFECT OF PROMOTIONAL SCHEMES ON CONSUMER:

60%
52%

50%

40% 34%

YES
30% NO
MAY BE

20% 14%

10%

0%
YES NO MAY BE

INFERENCES:
1. This diagram shows the percentage of respondents whose buying
behaviour is influenced by promotional schemes.
2. Consumers are attracted towards promotional schemes.
3. Buying decision of consumer can be changed through consumer
schemes.
27

VALUE FOR MONEY


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

3.50%
4.50% MAZZA
FROOTI
5% 4% REAL
TROPICANA
4%
JUMPING SLICE
4%
3% JUMPING
3% SLICE
3% 4% REAL
2% TROPICANA
4%
2%
FROOTI
1%
1% MAZZA
0%
MAZZA JUMPING

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 5 the WORST).
28

CONSUMER AWARENESS REGARDING PACKAGING OF


FROOTI:

PET BOTTLE

7%
11%

YES
NO
CANT SAY

82%

TETRA PACK

13%
4%
YES
NO
CANT SAY

83%
TIN CAN
29

I
NFE
REN
3% YES
CE
95% 2% NO
CANT SAY

GLASS BOTTLE
2%
10%

YES
NO
CANT SAY

88%
30

1. Consumer is well aware of packaging of Frooti .

CONSUMER AWARENESS REGARDING AVAILABILITY OF


VARIOUS QUANTITIES OF FROOTI .

11% 65 ML

YES
50% NO
CANT SAY
39%
31

200 ML
1%
17%

YES
NO
CANT SAY

82%

500 ML
7%

YES
50% NO
43% CANT SAY

1000 ML
9%

YES
49% NO
CANT SAY
42%
32

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

90 90

80

70

60
BELOW 100ml
50
200-250ml
40 500ml
30 27.4 1000ml

20 20.4 20.4

10

0
BELOW 100ml 200-250ml 500ml 1000ml

INFERENCES
1. There is good demand for all the quantities.
2. Great demand for 200-250 ml.
3. Introduction of 65 ml was a good move.
33

CONSUMER RESPONSE FOR THE MOST CONVENIENT FORM

OF PACKAGING

19%

30%

TETRA-PACING
PET - BOTTLE
GLOSS BOTTLE

51%

INFERENCE
34

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‾ - p
Z=
√ {p (1-p)/n}

Where
p= sample proportion (calculated from graph) = 80%
p¯=population proportion (known) = 81%
n= sample size=100
.81-.8
Z=
√ {.8(1-.8)/100}
35

=.25

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


accepted .

Conclusion: customer 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‾ - p
Z=
√ {p (1-p)/n}
Where
p= sample proportion = 44%
p¯=population proportion = 34%
n= sample size=100
Now
.34 – .44
Z=
√ {.44 (1-.44)/100}

= -2.01

5. Calculated value is not fall in acceptance level ,so the hypothesis is rejected
36

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‾ - p
Z=
√ {p (1-p)/n}
Where
p= sample proportion = 90%
p¯=population proportion = 91%
n= sample size=100
Now
.91 – .9
Z=
√ {.9 (1-.9)/100}

= .33

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


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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, 250 ml, 500 ml and 1 Litre.
5. Efficient distribution network-readily available.
6. Frooti is a health drink - Contains Vitamin A.
7. Frooti has got a strong Brand Equity.
38

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.
39

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.
40

RECOMMENDATIONS FOR FROOTI ON THE


BASIS OF MARKETING MIX
PRODUCT
Frooti in Others Flavours:
1. As per our survey, 77% of the respondents want Frooti in
flavours other than mango and green mango like Orange,
Pineapple and Grape.
2. Now, the most striking fact is that Frooti is available in Orange,
Strawberry and Pineapple flavours in selected cities in
Maharashtra like Mumbai and Pune.
3. These flavours are not available in Hyderabad and Secunderabad
region.
4. Our main competitor Real is available in many flavours like
mango, orange, guava, grape, apple, pineapple and mix fruit etc.
5. So, to compete with Real and other competitors, the present
variants of Frooti in orange, pineapple and strawberry flavour
should be made available all over India.
6. Frooti should also be made available in grape flavour as there is a
great demand for this flavour, especially in the under 20 age-
group segment.

2. The Appy case :-

1. Appy is a new product launched by the Parle agro. It is a nectar


drink which comes in apple flavour.
2. Now the question is that Parle agro has not used the brand equity
of Frooti in branding Appy.
The reasons for this can be :-
1. Appy 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 as a look alike for champagne drink
and is targeting the upper income class consumers.
41

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
Barista 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
Parle 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,
Parle 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, Parle Agro 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. Parle can also promote Frooti by providing various offering like
Refrigerators.
42

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 Pokemon to target the kids and
both of them should feature together in the advertisement.
43

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.
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:
44

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


2. www.parleagro.com
3. www.netmba.com
4. www.indiainfoline.com
5. www.financialexpress.com
6. Business line.
7. Brand Equity, Economic Times
8. www.coolavenues.com

QUESTIONNAIRE
45

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 Lifebuoy 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. Do you drink Soft Drinks ? Yes / No
5. If yes, which Soft Drinks ?
6. Carbonated Drinks / Fruit Drinks
7. Which fruit Drinks u like most ?
• MAZZA
• SLICE
• FROOTI
• REAL
• TROPICANA
8. Do u know Frooti is available in many flavour ? Yes /No
9. If yes what are they?
• Mango
• Green mango flavour
• Other .
10. Should Frooti come in other flavour ? Yes/ No

11. If yes , which flavour ?


46

• Orange
• Apine apple
• Grape
• Other
12. Is Frooti a health drinks ? Yes/ No
13. Is Frooti a child drink ? Yes /No
14. Is Frooti readily available ?
15. Do you think advertising influence you to drink Frooti ? Yes/No
16. Which drink give you more value ?
• Frooti
• Mazza
• Slice
• Real
• Tropicana
• Jumping
17. Do you know Frooti is available in many packages ? Yes/ No
• Pet bottle
• Glass bottle
• Tetra pack
18. Which packages do u prefer most ?
• Pet bottle
• Glass bottle
• Tetra pack
19. Do you know Frooti is available in many quantity?
• 65 ml
• 200 ml
• 500 ml
• 1000 ml
47

20. Which quantity do you prefer most?


• 65 ml
• 200 ml
• 500 ml
• 1000 ml
21.What is your opinion of the brand?
• Excellent
• Good
• Fair
• Poor
22. What is your monthly consumption?
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 …….
.
.
.
.
.