project report on launching fruit punch

Description
Project Report on Launching Fruit Punch

# 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.

# In–home 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.

FP Agro Pvt Ltd
Group Members
Marshall D’Souza # 115
Maulik Mehta # 136
Nikhil Mehta # 137
Vishal Pansari # 149
Kamlesh Parmar # 150
Niket Raut # 161
Marketing Management
A Project Report on
Agenda
Industry Analysis
Why this Product?
About the Company
Mission & Vision
Target Market
Competitive Analysis
SWOT Analysis
Marketing Mix (4 P’s)
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 Market Share
Juices 30%
Nectars 10%
Fruit Drink 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.
In–home 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 India’s 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 world’s 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 2 percent 2 percent 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) Changing age profile- A relatively larger share of young
population which has the ability to spend on processed foods
2) 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
3) Social changes- Increasing number of working women
4) Life style factors- Increasing health consciousness and need
for convenience fruit drink
5) 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 Variables Used for Segmentation Variables Used for Segmentation Variables Used for Segmentation
1) Geographic variables
2) Demographic variables
3) Psychographic variables
4) Behavioral variables
Market Segmentation Variables
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
Age – all age group
Gender – Both Male and Female
Family size - doesn’t matter
Education - doesn’t matter
Income – middle & hi end consumer
Occupation – student, working and retired people
nationality/race – doesn’t matter
language - doesn’t matter
benefit sought
product usage rate
brand loyalty
profitability
income status
Geographic Geographic Geographic Geographic Demographic Demographic Demographic Demographic
Psychographic Psychographic Psychographic Psychographic Behavioral Behavioral Behavioral Behavioral
Personality Personality No No
Lifestyle Lifestyle Yes Yes
Value Value Yes Yes
Attitude Attitude Yes 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
Parle’s Agro’s 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 Name Strengths Strengths Weakness Weakness
CavinKare CavinKare Pvt Ltd Pvt Ltd Acquired Acquired Maa Maa Fruits Pvt Ltd Fruits Pvt Ltd
Distribution network Distribution network
Entering in a new Entering in a new
segment segment
Coca Cola India Coca Cola India Global leader in beverages Global leader in beverages
Growing Fast Growing Fast
New Entry New Entry
PepsiCo PepsiCo Global Brand in beverage Global Brand in beverage Less Product Line Less Product Line
Parle Agro Parle Agro Market share Market share Less Product Line Less Product Line
Dabur Dabur Market leader Market leader Less cost effective Less cost effective
Godrej Beverages Godrej Beverages Innovation Innovation New entry New entry
Ladakh Ladakh Foods Foods Nutrients Nutrients Taste Taste
Mother dairy Mother dairy Cost Effective Cost Effective New Entry New Entry
SWOT ANALYSIS
• Adequate availability of raw
materials
• Price, a competitive advantage
• Natural Product.
STRENGTH STRENGTH STRENGTH STRENGTH WEAKNESS WEAKNESS WEAKNESS WEAKNESS
OPPORTUNITY OPPORTUNITY OPPORTUNITY OPPORTUNITY THREATS THREATS THREATS THREATS
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N
A
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E
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• Seasonal availability of fruits
• Brand acknowledgement
• Late entry into the market.
• Dependence on HP fruits.
• Dependence on Monsoon
• Participation with a growing
industry.
• Competitive advantage over
carbonated soft drinks.
• Success of incredible India
campaign
• Possible deal with Mumbai Criket
Association (MCA).
• 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
Mango
Mania
Crispy Apple
Mixed Fruit
Orange
Bytez
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 Penetration Pricing Penetration Pricing 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: Social Networking: Social Networking: 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 twitter twitter 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
No. Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
A Installed Capacity (In Tonnes) 1070 1070 1070 1070 1070
Capacity Utilisation 75% 85% 85% 85% 85%
Sales Realisation (20 % Growth yoy) 115.00 138.00 165.60 198.72 238.46
B Cost of Production 23.00 27.60 33.12 39.74
Raw Materials 54.75 60.23 66.25 72.87 80.16
Packing Material 4.25 4.68 5.14 5.66 6.22
Salaries 21.25 23.38 25.71 28.28 31.11
Stores & Spares 1.50 1.65 1.82 2.00 2.20
Selling and Distribution 8.50 9.35 10.29 11.31 12.44
Administrative Expenses 5.00 5.50 6.05 6.66 7.32
Total 95.25 104.78 115.25 126.78 139.46
C Profit before Interest & Depreciation 19.75 33.23 50.35 71.94 99.01
Interest on Term Loan 3.32 3.32 3.32 3.32 3.32
Interest on Working Capital 0.28 0.28 0.28 0.28 0.28
Depreciation 2.23 2.23 2.23 2.23 2.23
Net Profit 13.92 27.40 44.52 66.11 93.18
Income-tax @ 20% 2.78 5.48 8.90 13.22 18.64
Profit after Tax 11.14 21.92 35.61 52.89 74.54
(Rs. in lacs)
Source: MOFI (Ministry of Food Processing Industries )
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
5 Year Planning
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

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