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INTRODUCTION

PARLE AGRO PVT. LTD.

Parle 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 toidentify the dormant mango segment in India and launch

Indias 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

WHY FROOTI

Soft drink market can be divided into two categories:-


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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 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 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 - Indias national and most premium fruit was a

virtually untapped segment until the year 1985, which saw the


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launch of Frooti Mango in a trendy convenient tetra-pack.

Frooti Mango is Parle Agros flagship brand and Indias

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 wor ld. 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 thefancy 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 aper ishable productand 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 drinkthat 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


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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. Then 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 marketingcampaigns 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 likeWho 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.T he

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.


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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 isfacing 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.

NON-CARBONATED SOFT DRINK INDUSTRY IN

INDIA

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.


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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, Parles Frooti, Godrejs

Jumpin and Coca-Colas Maaza and Pepsis Slice are the major

brands. In the Nectar segment, the keyn a t i o n a l players are

- Dabur, Godrej Xs and Parles 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 increasingHealth 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


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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.

COMPETITORS:

The main competitors of Frooti are as follows:-

1. Maaza

2. Slice

3. Real

4. Tropicana

5. JumpinWe 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)


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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 inthe late 1940s after James Culliton had described the

marketing manager as a mixer of ingredients.

The ingredients in Bordens 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 Ps of marketing,

Product, price, place and promotion. These four Ps 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 Ps 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 tosatisfy a want or need. Indias 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


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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 pricesdepending upon the consumer requirements, preferences and

income-levels. As we can see from the above table, Frootis

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:


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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 include:

1. Promotional strategy (push, pull, etc)

2. Advertising


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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 category.

In fact, the company has taken a different marketing route by

launching a host of new retailing and packaging initiatives topump 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 Frooti 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.


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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.

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, Apple, Pineapple and mix fruit

etc.

3. So, to compete with Real and other competitors, thepresent 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 flavour, especially in the under 20 age-

group

segment.

PLACE:

1. Retail chain of NCSD in India


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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 packageso 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 theretailers 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.


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Reason for failure of frooti- prachi

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 next store if they dont get at

there preferred store.


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Weak Distribution channel in interiors(rural) area

Low Margin for distributors and also they dont 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

itshas image of simply mango drink.

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

youth.

SWOT ANALYSIS- boo

The overall evaluation of a ones strengths, weaknesses,

opportunities and threats is called SWOT analysis.

STRENGTHS OF FROOTI:

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


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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.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 didnt 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.


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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 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.


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3. High consumer preference for flavours other than mango

and green mango.

4. Competition with global giants - Coke and Pepsi.


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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 ofthe 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 introducedso that Frooti does not loses its current target 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


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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.


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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 market 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.

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