JUICY BATTLE

Presented by: U

Need Family

Juice

Product ClassNon-carbonated

Beverages

Beverages

Product Line

Packaged Juice

Product Type

Product Family

Thirst Quenching

ROUND #1

• To become world’s premier beverage industry and thereby creating healthy financial rewards and growth

• To provide largest range of refreshing, preservative free fruit beverages for the health and well being of every household

VisionVision

COMMITMENT

1. Promoting health & wellness

2. Focus on product reformulation

COMPETENCY

1. Strong product portfolio

2. Developing niche business

3. “Ayurvedic” foundation

STRATEGIC INTENTSTRATEGIC INTENT

Total soft drink(Organised)

3800

612

Carbonated Noncarbonated

Total MarketRs4418Cr 14%

86%

Unorganised Organised

Total MarketRs4392Cr

Total Non-carbonated market

MARKET STATS

Drink65%

27%

8%

Fruit juice Nectar Drink

9%3%1%

55%

2%

30%

Real TropicanaNBBD-Safal Parle-AppyGodrej-Xs Other

Non-Carbonated beverage

Total:Rs615Cr

Total:Rs215Cr

Fruit juice & Nectar

Over all segment growth rate=27%; Expensive segment growth=40%

MARKET SHARE

62

34

58

35

55

38

0

10

20

30

40

50

60

70

2004 2005 2006

Real Tropicana

MS

Time

Dabur

Market share

Due to new entrants

Trop

Net sales contribution of different Dabur business

CCD CHD DFL IBD Others

67% 8% 11% 13% 1%

FOOD11%

Particulars Rs Cr

Net revenue

(%Growth)

1039.6

(17.8)

PAT

(%Growth)

126.6

(12.2)

EPS 2.2

DFL

(%Growth)

190

(27)

PBIT(DFL)

(% Growth)

13.6

(15.8)

Juices

( % Growth)

66.4

(29)Growth only 2nd to CCD business(30%)

Real active9%

Junior6%

Others5%

Real80%

Real Real active Junior Others

Real’s-Contribution to top line

DFL=190Cr

Net sales contribution of different Pepsico business

PI FLNA PBNA QFNA

35% 32% 28% 5%

International35%

Particulars $ Mn

Net revenue

(%Growth)

32562(Rs147KCr)

(11)

EPS (%Growth)

2.6

15

PI

(%Growth)

11376(Rs52KCr)

(15)

PAT

(% Growth)

1607(Rs7KCr)

(21)

6.9

13.8

11.7

8.8

0

200

400

600

800

1000

1200

1400

1600

2003 2004 2005 2006

0

2

4

6

8

10

12

14

16

Net revenue

Profitability

TREND CHART-DaburR

s C

r

13.23%14.39%

12.52%

16.06%

11.95%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2002 2003 2004 2005 2006

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

Net revenue Profitability%

TREND CHART-PepsiCo$

Mn

9 8TROPICANA REAL

Objective(3) 3 2

Strategy(3) 3 2Market share(4) 3 4

JUICE –Variety seeking product

Low involvementHi involvement

Significant Brand Difference

Few Brand Difference

Product Category

19%

81%

Planned Unplanned

53%47%

Impulsive Non-Impulsve

BUYING PATTERN

Consumption pattern2006

2004

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2004 2006

Inhouse consumption Outside consumtion

Consumption Pattern

0

5

10

15

20

25

30

MAX MIN

Cons/mnth

Mn

lts/

mnt

h

•Highly seasonal demand

•Fruit production=9 Mn tonne (growth=12%)

•Total soft drink market(juice+carbonated)=US$1Bn

•Juice Market= 230 Mn Ltr

•Packed juice=1%

•Consumption is a group activity

•60% prefer to see the juice they buy

Facts about industry

Demand gap

Geographical

TROPICANA REAL

Location Metros/mini metros Metro/mini metro

DemographicAge Bachelor/newly

married/FN1/FN2Mothers/children 6-14/young executives

Income Hi spendable income/hi asset and saving

Hi spendable income/hi asset and saving

Education/occupation

Educated/executive/working professionals

Educated housewives/ executive/working professionals

Social Class SEC-A/SEC-B SEC-A/SEC-B

SEGMENTATION

BehavioralKnowledge of the product

aware aware

Psycho graphicLifestyle Actualizers(status

oriented)/Experiencers/striversBelievers/strivers

Personality Self-confidence Sociability

• Energy balance=calories in – calories out

• Small, strategic and “tuck in” acquisitions leading to organic growth

• Strategic alliance with vendors/Agro-industries

• Substitute for carbonated beverages

• Entering the choice set by

increasing the product length

• Collaboration with hospitality industry/work place

GROWTH OPPORTUNITYGROWTH OPPORTUNITY

Variety seeking

Health seeking

R-JuniorT-Healthy kids

R-ActiveT-Light n healthy

RealT-fibre

T- organic

Tropicana

Real

Product MappingProduct Mapping

Price

Fruits flavoursFruits+veg flavours

R

T

R

T

Price MappingPrice Mapping

Rs 3-4/lt

Multiple Pack Sizes

For varied consumption needs and occasions

Smart Sport Symbol

For identifying healthier lifestyle products

Spin-Cap Tetra Pack

Retaining freshness & preventing adulteration

Exotic Range of Flavors

For varied consumption tastes and choice

TAILORING STATEGIES TO SEGMENTTAILORING STATEGIES TO SEGMENT

7 9TROPICANA REAL

Segmentation(4) 2 3Growth opportunity(3) 3 3Tailoring needs(3) 2 3

ROUND #2

• Fun for you products –to- wellness products

• Addresses safety needs

• “Preservative free” drink

• Various flavours n variants

• Real Active orange-carrot

CUSTOMER’S NEEDCUSTOMER’S NEED

• Portraying youthfulness and freshness

• Communicating benefits of good health

• TVC uses lifestyle imagery

• Communication directed at distinct audiences

GETTING CLOSERGETTING CLOSER

• Low sugar/low fat/low Na beverages

• Committed to support active lifestyles

• Great taste and wholesome nutrition

• Complete family package

FOCUS ON SOLUTIONSFOCUS ON SOLUTIONS

8 9TROPICANA REAL

Needs(4) 3 3

Communication(3) 2 3Solution(3) 3 3

CREATE COMPETENCIESCREATE COMPETENCIES

• Superior technological know-how

• Huge sourcing capacities

• Trusted name in natural health care over 100 yrs

• Healthy product mix of natural & herbal products

DEVELOP CABABILITIESDEVELOP CABABILITIES

• Linkages-upstream in the supply chain

• Hub for orange Juice– 11% of brazil production

– 2Mn mt tn of orange production

• Extensive distribution network

• Setting up strategic manufacturing bases

• Implemented SAP to enhance quality of supply chain

INTEGRATE FUNCTIONSINTEGRATE FUNCTIONS

• BPT(business process transformation)

• DARE program(driving achievement of retail excellence)

• Point of sale software at stockists

8 7TROPICANA REAL

Competency(4) 4 3

Capabilities(3) 2 2Integration(3) 2 2

ROUND #3

• Core competency in beverage industry.

• Powerful brands

• Internationally tested and proven flavors

• First mover advantage

• Learning curve advantage

• Innovation in product offering

• Redefining traditional marketing dynamics

Competitive Advantage

• Above-the line & below-the-line promotion

• Promoting as a health drink

• Novelty in concept -”mixology”

• Promoting Juice as social drink

• “Customized” juices

BEAT COMPETITIONthrough innovation

Consumption11%

Consumption/Awareness=0.64

Consumption15%

Consumption/Awareness=0.57

SUSTAININGthrough branding

Tropicana

Real

Bra

nd e

quit

y

Brand image

Hi

L

HiL

Equity Vs Image

6 8TROPICANA REAL

Create(4) 3 4

Beat(3) 1 2Sustain(3) 2 2

FINALROUND

• Sustenance through “tripple bottom line”

• S.M.A.R.T-lifestyle program for healthier living

• Sundesh-Welfare organization

• Committed to maintain ecological balance

• Reforestation of Himalayas

SOCIAL RESPONSIBILITYSOCIAL RESPONSIBILITY

• Training and educating farmers

• Engaging in water harvesting programs

• Creating health awareness programs

• Calorie consciousness

• New generation getting attracted towards packed foods

RECOGONISE ENVIRONMENTAL CHANGESRECOGONISE ENVIRONMENTAL CHANGES

5 8TROPICANA REAL

Environmental(5) changes

2 4

Responsibility(5) 3 4

• Customer feedback.• Constant endeavor

towards innovation• Commitment towards

community service

• Preservative free• Taste close to real fruit

• Full of nutrients & vitamins.

• Fruit + vegetable concept.

CUSTOMER FOCUSCUSTOMER FOCUS

• Practice EPA hierarchy: Reduce, Reuse, Recycle.

• We must always strive to: Care for customers, consumers and the world we live in.

• duly NABL accredited under ISO/IEC 17025

• Sell only products we can be proud of.

• The flagship brand of Dabur Foods maintains leadership status (55 percent market share)

• The company has decided to adopt US GAAP.

• Dabur Real gets HACCP certification.

• TQM and TPM are strictly Practiced

Benchmarking

2 3

TROPICANA REAL

Focus(5) 4 4

Benchmarking(5) 3 2

7 6

.

• Indian consumer preferred fresh juice to packaged juice.

• Preservatives presence deteriorates freshness

• The fruit-juice market in India is pegged at 2.5 billion rupees

• Indian consumers like to add sugar when they squeeze fruit juice. We ensure that we cater to our customers' taste and preferences, and have added sugar to our juices.

96%

4%

Fresh juice Packed juice

Potential market

Qualitative Research System

Point# Weightage Real Tropicana

1 0.20 8 1.6 9 1.8

2 0.15 9 1.35 7 1.05

3 0.10 9 0.9 8 0.8

4 0.25 7 1.75 8 2

5 0.05 8 0.4 6 0.3

6 0.15 8 1.2 5 0.75

7 0.06 6 0.36 7 0.42

8 0.04 6 0.24 8 0.32

Total 1.00 7.8 7.4

SCORE CARD

AND THE WINNER IS…AND THE WINNER IS…