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…