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Consumer Behavior Project on

Repositioning of Frooti

SUBMITTED TO:
Prof. Ashwin Bhatia
SUBMITTED BY:
Abhishek Pathak
Aparna Srivastava
Faraz Khan
Kapil Dev Agrawal
Rahul Pandey
Shubam Sharma
Saravjeet Singh
ACKNOWLEGDEMENT

It is our privilege to take the opportunity to thanks all


those who have directly or indirectly helped us in the
completion of this present Project work.
We are delighted to thanks Prof. Ashwin Bhatia for his
able guidance, constructive criticism and generous help
throughout project. We would also like to express our
appreciation for the encouragement and direct assistance,
excellent cooperation, valuable suggestion and help given
by him at every step of our project.
Words fail to express our humble gratitude and profound
regards to our Parents for their affectionate
encouragement and blessing which always being a source
of inspiration for me without which, it could not have
been possible to achieve the objective.
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 w ith 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 ide ntify
the dormant mango segment in India and launch India‟s first national
Mango drink - Frooti Mango. 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
2. BAILLEY AQUA
3. N-JOI
4. APPY
WHY FROOTI:
Soft drink market can be divided into two categories: -
1. Carbonated soft drink
2. Non-carbonated soft drink (NCSD).
Frooti is the market leader in the NCSD category with around 60%
market share. The NCSD mark et 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 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 P arle 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 wi th 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 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 brighter 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 (Bran ded & 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 / region al 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 D rink 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.

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.

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 Cul liton
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‟. 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 mar keting 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 DR INK).

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

PRICE:
TETRA PACK PACKAGING
QUANTITY PRICE (Rs.)
 65 ml 2.50
 165 ml 10.00
 200 ml 12.00

PET BOTTLE PACKAGING


QUANTITY PRICE (Rs.)
 220 ml 15.00
 600 ml 25.00
 1000 ml 40.00
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 n ew 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
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

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 i nclude:
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 pl ans
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. Three years ago, Parle Agro intro duced 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 famou s 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.
Questionnaire

Q-1 Do you drink soft drink?


A) Yes – 92% B)No-8%

Yes
No

FINDINGS
 Most of the respondent prefer soft drink.

Q-2 If yes, then which soft drink?


a) Carbonated drink- 64%
b) Fruit drinks- 36%

Carbonated
Drink
Fruit Drink

FINDING

 32 respondent like carbonated drink (i.e. PepsiCo , Coca-Cola , etc products) and
18 respondents prefer fruit drinks . So still there is more demand of carbonated
drink.
Q-3 Which fruit drink you like most?
a) Mazza -24%
b) Slice- 16%
c) Frooti- 24%
d) Real- 30%
e) Tropicana- 6%

Mazza
Slince
Frooti
Real
Tropicana

FINDINGS
 People are more health couscous so Real in on top with 15 respondents.
Q-4 Should frooti come in other flavor also?
a) Yes- 70% b) No-44%

No

Yes

FINDINGS

 70% (35) of respondent want to have some new flavor of innovation in the
product.

Q-5 If yes, which flavor?


Orange-44%
Pine apple-16%
Mix fruit- 24%
Others- 16%

Orange
Pineapple
Mixfruit
Others

FINDINGS

 Frooti Orange is the new demand of the respondent and then the Mix fruit juice.
Q-6 Is Frooti a health drinks?

a)Yes- 24% b)No-76%

Yes
No

FINDINGS
 76% of respondent prefer frooti for taste and thirst and only 24% believe its good
for the health.

Q-7 Is Frooti a child drink ?

a) Yes-54%
b) No-44%

Yes
No

FINDINGS
 Most of people believe frooti still is a child drink so frooti fail in targeting youth.
Q-8 Is Frooti readily available?
a) Yes 36% b)No 64%

Yes-
No-

FINDINGS
 As per respondent frooti not easily available.

Q-9 Do you think advertising influence you to drink Frooti ?

a) Yes 16% b) No 84%

Yes
No

FINDINGS
 After all the new advertisement and promotion strategy most of respondent
drink frooti because of taste and brand loyalty.
Q-11 Which packages do you prefer most ?
a) Pet bottle- 48%
b) Glass-6 %
c) Tetra pack- 46%

Pet-bottel
Glass
Tetra pack

FINDINGS
 Still the demand of pet bottle is more than tetra pack and glass bottle.

Q-12 Which quantity does you prefers most?


a) 65 ML-12%
b) 165 ML-24%
c) 500 ML-40%
d) 1000 ML-24%

65 ml
165 ml
500 ml
1000 ml

FINDINGS
 Most preferred size is 600ml and then IL and 165 ml.
Q-13 Would you visit another store X, if you do not find frooti at your store?
a) Yes -12%
b) No-88%

Yes
No

FINDINGS
 Demand of frooti is more depend on the availability and 44 respondents do not
prefer to search of frooti, so we can say that brand loyalty of frooti is still weak.
Reason for failure of frooti

 Advertisement is basically very much kids and mango oriented


and there is no brand ambassador for frooti so far.

 Brand loyalty is getting low day by day of frooti as there are lot
of other competitors are in market according to our survey lot of
person refuse to go n ext store if they don’t get at there preferred
store

 Weak Distribution channel in interiors (rural) area

 Low Margin for distributors and also they don’t provide them
frooti accessories like freeze, big hoardings & frooti stands.

 No brand expansion, brand equity is not utilize properly

 Frooti is not persuade as health drink according to our survey it’s


has image of simply mango drink.

 Failure of YO! Frooti…… it was launched in keeping the mind


youth.
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 Li tre..
5. 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. Frooti has no brand ambassador.
6. 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 mar ket 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 unor ganized 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
Frooti in Others Flavours:
1. As per our survey, 70% of the respondents want Frooti in flavours
other than mango like Orange, Pineapple and mix fruit .
2. Our main competitor Real is available in many flavours like Mango,
Orange, Guava, Grape, A pple, Pineapple and mix fruit etc.
3. 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.
4. Frooti should also be made available in grape flavour as there is a
great demand for this f lavour, especially in the under 20 age -group
segment.

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.
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) shoul d also be introduced so that
Frooti does not loses its current ta rget 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 “pyaas wahi bhukh nayi ”) Along with him, Frooti
should also go for a famous cartoon.
2. Character like Scooby doo or Popeye to target the kids and both of
them should feature together in the advertisement.
3. Should reposition it in market as healthy drink.
4. Frooti should make a “ Brand community”
5. Accessories (i.e freeze ,big hoardings, frooti stands) related to frooti
should provided by company to retailers.
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 bottle and 65 ml
Tetra pack) of Frooti is positive as shown in the survey.
3. Tag of Healthy drink can improve its declining ma rket share .
4. Distribution channel is weak.
5. Accessories (i.e freeze ,big hoardings, frooti stands) related to frooti
is not provided by company to retailers.

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).
Annexure

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. Do you drink Soft Drinks ?


 Yes
 No

2. If yes, which Soft Drinks ?


 Carbonated Drinks
 Fruit Drinks

3. Which fruit Drinks you like most?


 MAZZA
 SLICE
 FROOTI
 REAL
 TROPICANA

4. Should Frooti come in other flavor ?


 Yes
 No

5. If yes , which flavour ?


 Orange
 Pine apple
 Mix fruit
 Other

6. Is Frooti a health drinks ?


 Yes
 No

7. Is Frooti a child drink ?


 Yes
 No
8. Is Frooti readily available ?
 Yes
 No

9. Do you think advertising influence you to drink Frooti ?


 Yes
 No
10. Which drink give you more value ?
 Frooti
 Mazza
 Slice
 Real
 Tropicana

11. Which packages do u prefer most ?


 Pet bottle
 Glass bottle
 Tetra pack
12. Which quantity do you prefer most?
 65 ml
 165 ml
 500 ml
 1000 ml
13. Would you visit another store X, if you do not find frooti at your store?
 Yes
 No