Marketing Management

A Project Report on

FP Agro Pvt Ltd

Group Members
Marshall DSouza # 115 Maulik Mehta # 136 Nikhil Mehta # 137 Vishal Pansari # 149 Kamlesh Parmar # 150 Niket Raut # 161

Agenda

Industry Analysis Why this Product? About the Company Mission & Vision Target Market Competitive Analysis SWOT Analysis Marketing Mix (4 Ps)

Beverages Market in India

Alcoholic Drinks

Soft Drinks

Beer Spirits

Bottled Water Carbonated Drinks

Wine

Juices Sports/Energy Drinks

INDUSTRIAL ANALYSIS
Branded fruit beverage market in India is estimated to be worth Rs. 1,200 crore (nectars, drinks and juices combined) Juices - over 85% pulp content Nectars - 20% to 85% pulp content Fruit Drink Less than 20% pulp content

Segment Juices Nectars Fruit Drink

Market Share 30% 10% 60%

INDUSTRIAL ANALYSIS
The Fruit Drink market has grown at a 20% to 25% rate. Of this, more expensive juices segment has grown at rate of 40% this year. It accounted for only 15% of the fruit beverage 3 years back. Inhome consumption of juices has gone up from 30%, three years back to 80% today. Mango based drinks account for two thirds of fruit drinks industry. More than 80 % of sales happen through the unorganized route - juice centers, street corner shops and so on

About FP AGRO PVT LTD

FP Agro will produce fruit juice & fruit drinks.

FP Agro is going to make unique position in terms of corporate presence with its advanced technology and the instrumentation required to manufacture a Juice that has many different flavors, for utmost customer satisfaction.
FP Agro will be an environment-friendly company dedicated on sustainable development and corporate social responsibility, as a service to society and preservation of nature. FP Agro headquarter will be situated in Mumbai and it would be having Satellite branches in major Metros.

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

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

Why this Product?

India currently produces about 50 million tonnes of fruits, which is about 9% of the worlds production of fruits. Though India has a strong raw material base, it has been unable to tap the potential for processing and value addition in perishables like fruits and vegetables. Only about 2 percent of the fruits and vegetables in India are processed, which is much lower when compared to countries like USA (65 %), Philippines (78%) and China (23)%

Why this Product?

Factors Driving Demand for Our Product

1)
2)

3) 4)

5)

Changing age profile- A relatively larger share of young population which has the ability to spend on processed foods Increase in income- The middle and upper middle income groups growing at a faster rate than in developed countries resulting in higher spending on food Social changes- Increasing number of working women Life style factors- Increasing health consciousness and need for convenience fruit drink Availability of Organized Retail outlets- These provide the much needed forward linkages

TARGET MARKET
Primary Market
Kids Fond of Fruit Juice (fond of mango, strawberry) Teens More experimental Youth Experimental and more buying power Working People Housewives Elderly people

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

Market Segmentation
Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs
Variables Used for Segmentation 1) Geographic variables 2) Demographic variables 3) Psychographic variables 4) Behavioral variables

Market Segmentation Variables

Geographic
By leveraging the benefits of liberalization and integration of the markets of the world, FP will seek to serve both domestic and international customers. Metropolitan Cities, major cities/towns of the states. Density of Area: Urban, Semi-urban, Rural. Climate: Tropical

Demographic
Age all age group Gender Both Male and Female Family size - doesnt matter Education - doesnt matter Income middle & hi end consumer Occupation student, working and retired people nationality/race doesnt matter language - doesnt matter

Psychographic
Personality Lifestyle Value No Yes Yes

Behavioral
benefit sought product usage rate brand loyalty profitability income status

Attitude

Yes

Major Competitor Analysis

Dabur's flagship brand Real fruit juice is a market leader in the packaged fruit juice category. Real with a market share of 57 % offers to its consumers the largest range of 9 juices that comprise orange, mango, pineapple, mixed fruit, grape, guava, tomato, litchi and cranberry. Real Active orange carrot juice, India's first packaged fruit + vegetable juice. Spread over 11 acres and geared to process 150 tonnes of fruit per day, it has the capacity to produce 192 tonnes of pulp/concentrate

Tropicana is a product of vast PEPSI family and has a market share of 25% The company sources orange juice concentrates from Brazil. They come in Tetrapaks of one litre and PET bottles of 500 ml and one litre. Pepsi also markets Gatorade an energy drink for the sports personnel which is a sugar-free Diet Pepsi. Pepsi, in association with Unilever have launched Lipton iced tea

Major Competitor Analysis

Frooti from Parle Agro is the largest distributed fruit drink with 85% market share (Tetra Pack) It reaches more than 10 lakh retail outlets in up to class C towns Parles Agros APPY, in 1996 had a market share of 5% in the fruit drink segment In 2003 its new variant-APPY FIZZ was launched which was a hit.

Maaza was launched in 1976. In 1993, Maaza was acquired by coca cola India. Over the years, Maaza has become synonymous with mango. The drink became a hit with successful advertisement campaigns like "Taaza mango, maaza mango,' and 'Botal mein aam, maaza hain naam. It is available in 200 ml , 250 ml , 125 ml Tetrapak and 200 ml Tetrapak.

Strengths & Weakness of Competitors

Name CavinKare Pvt Ltd Strengths Acquired Maa Fruits Pvt Ltd Distribution network Weakness Entering in a new segment

Coca Cola India

PepsiCo Parle Agro Dabur Godrej Beverages Ladakh Foods Mother dairy

Global leader in beverages Growing Fast

Global Brand in beverage Market share Market leader Innovation Nutrients Cost Effective

New Entry
Less Product Line Less Product Line Less cost effective New entry Taste New Entry

SWOT ANALYSIS
STRENGTH
INTERNAL
Adequate availability of raw materials Price, a competitive advantage Natural Product.

WEAKNESS
Seasonal availability of fruits Brand acknowledgement Late entry into the market. Dependence on HP fruits. Dependence on Monsoon

OPPORTUNITY
EXTERNAL
Participation with a growing industry. Competitive advantage over carbonated soft drinks. Success of incredible India campaign Possible deal with Mumbai Criket Association (MCA).

THREATS
Cut throat competition Unstable government policies Rising Global Warming

Marketing Mix

Product
Fresh Punch is a 100 percent fruit juice which will be produced and marketed by the FP Agro Industries Ltd. BRAND NAME: FRUIT PUNCH

Our Product Variants

Mixed Fruit

Orange Bytez

Crispy Apple

Mango Mania

Product Life Cycle

Our product lie in Introduction Period of PLC Low sales High costs per customer Negative profits Innovator customers Few competitors Objective: To create awareness of product Offer a basic product Price at cost-plus Selective distribution Awareness dealers and early adopters Induce trial via heavy sales promotion

Place
Kullu (Himachal Pradesh) Hazira and Dahej (Gujarat)

Place
In the initial phase we would be outsourcing fruit processing and packaging of Fruit Juices under FP brand. Fruits such as Orange, Apple, Pineapple etc would be purchased from Kullu. Fruit Processing & Packaging would be outsourced to local producer. Mango would be purchased from Hazira and Dahej. Fruit Processing & Packaging would be outsourced to local producer. Mode of Transport: Road Transport

Pricing
As a new comer our pricing strategy is to introduce our products in the market at lower prices so as to create huge demand in the market and then compete with other competitors. As we come up in the demand, we will increase our prices and will provide more efficient and affordable juices

Pricing Strategy
Penetration Pricing Our product will be lie on penetration strategy with high quality & low price For introducing new product Price low to capture market share Expect to make profit in volume

Promotion
As we are in the Introduction phase, our objective is to create brand awareness through Informative Advertising. Use of Print Media, Radio Advertisement, Hoardings in Public Spots, Sample Distribution, Organizing Events, TV Commercial etc. Tie Up with major Cinema halls to promote our products during Intervals. In-film advertising, in its most effective form, is about a brand being a part of the cinema's content.

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

facebook
Creating a community on facebook Creating a Fan page on facebook This will enable the brand to keep its TA engaged and updated on the introduction of new flavors and events

twitter
Creating an active account on a micro-blogging site such as twitter, where regular tweets on product and event updates will ensure interactivity Followers will be encouraged to tweet their suggestions on new flavors.

5 Year Financial Planning (Rs. in lacs)

No. A Particulars Installed Capacity (In Tonnes) Capacity Utilisation Sales Realisation (20 % Growth yoy) B Cost of Production Raw Materials Packing Material Salaries Stores & Spares Selling and Distribution Administrative Expenses Total C Profit before Interest & Depreciation Interest on Term Loan Interest on Working Capital Depreciation Net Profit Income-tax @ 20% Profit after Tax 54.75 4.25 21.25 1.50 8.50 5.00 95.25 19.75 3.32 0.28 2.23 13.92 2.78 11.14 1st Year 1070 75% 115.00 2nd Year 1070 85% 138.00 23.00 60.23 4.68 23.38 1.65 9.35 5.50 104.78 33.23 3.32 0.28 2.23 27.40 5.48 21.92 3rd Year 1070 85% 165.60 27.60 66.25 5.14 25.71 1.82 10.29 6.05 115.25 50.35 3.32 0.28 2.23 44.52 8.90 35.61 4th Year 1070 85% 198.72 33.12 72.87 5.66 28.28 2.00 11.31 6.66 126.78 71.94 3.32 0.28 2.23 66.11 13.22 52.89 5th Year 1070 85% 238.46 39.74 80.16 6.22 31.11 2.20 12.44 7.32 139.46 99.01 3.32 0.28 2.23 93.18 18.64 74.54

Source: MOFI (Ministry of Food Processing Industries )

5 Year Planning
Target of capturing 5% of the market share within a year and 30% by 2016-end Initially we would be outsourcing the processing of fruits, but after 3 years we would check the feasibility of starting our own processing plant. R&D Department to be set up by 2013 early, in order to facilitate innovation in existing products. We would open Satellite Branches in Major Cities to facilitate product training & improve on Market Share. FP Agro will be undertaking a host of energy conservation measures

Bibliography
Internet: mofpi.nic.in www.exportersindia.com news.reportlinker.com www.indiaagronet.com hpagrisnet.gov.in www.scribd.com Ministry of Food Processing Industries : Ministry of Food Processing Industries (MFPI): MFPI is the Nodal agency for development of the processed food sector in the country. MFPI's financial assistance schemes include schemes for technology upgradation, HRD, Quality testing, R&D, TQM, backward and forward integration, development of infrastructure including food parks, abattoirs, cold chains etc.

Thank YOU