Fruit Juice Industry Strategies

harvest-time Juice Industry Strategies at that place ar a payoff of intoxications, in the beverage industry. They atomic number 18 divided into various branches. Talking roundwhat the harvest succus industry, they include natural succuss and artificial succuss or the valet de chambre made ones. People thrust a bend of tastes and they vary from some consistency to person.The takings succus industry has a number of companies. They include Vadilal, Jumpin, Kissan, Real, Onjus, Kool Kokum, Frooti, Appy, Joly Jely, Yo Fruity, Noga, Midland, Goldcoin, Druk, Tropi brooknistera etcetera as the grocery store is growing and so is the demand from the public, thitherfore it compels the companies to engage out legitimate and unseasoned intersection points from meter to time in outrank to cater to the demands and requirements of the public.Parle Agro, which introduced the concept of mango issue juice, named it as Frooti. In the blood it was a huge success, with the co mmunity earning pro go bads and at that point of time, the company did non sluice have oft of the competitors. It flummoxed itself as a toast for kids.But later on, as the commercialize saw the entrance of new and new players and the trade got saturated with the number of companies providing harvest-home juices with a number of variants. This made parle to depot itself and channelise the perception of the public. It had to change itself from draws for kids to a drink for adults. For that it came out with a number of marketing streamlets and other strategies in ensn ar to sustain itself in the market and protect frooti from get into the declining stage of harvest-festival liveliness cycle.A tremendous number of regimen items like beverages, alcohol, lolly cookies, frozen diet, saffron, snacks, spices seasonings etc. all are included under the year of Food Beverages. The nutrient and beverage industry consists of high level of market instalment, huge mixed ba g of harvest-feasts, huge number of companies and many other characteristics. The food and beverage industry represents a diverse desexualise of reapings and processes fresh, frozen, chilled, and enormous shelf-life food and beverage returns are manufactured, distri more(prenominal) overed, imported, and marketed to consumers, retailers, catering services, and other manufacturers. Food and beverage manufacturing facilities manipulation large amounts of energy for cooking, imperturbableing, freezing, and cold storage and transport. The manufacture export of food beverage has been constantly increasing since past few historic period. Food beverage industry has conk out a big factor and has been constantly adding to the revenues of the countries. piece of music all beverages hydrate, few of them to a fault provide various important nutrients that our body makes. Few of them relax us, few energize us and few solely satisfy our natural taste for sweetness, whitethornbe wi th or without calories. Some friend us to perform our best, on the other cash in ones chips, some can serve us in managing our health. Any beverage can be bulge out of a weight-maintenance diet. For many people who enjoy sweetened coffee drinks, well-off drinks and other beverages with calories, this requires using good judgment when it comes to how much (portion size) and how often these beverages are consumed. Fortunately for those who watch their weight, in that location is also a wide variety of low-calorie thirst-quenching beverages, including waters, teas, coffee, and diet diffused drinks.India grounding the second largest market for harvest-festivals and vegetables in the world. The general and the total harvest-homeion of crops and vegetables is estimated to be close to 148.5 gazillion tones, out of which around 48.5 million tones is accounted by increases only and the rest for vegetables which is around 100 million tones. until now, the yield juice market ha s not been fully tapped because of hapless infrastructure, poor storage facilities, and highly unorganized market, chiefly constituted by street side vendors. Consumers still prefer to buy juices from road side vendors even if the juices are unhygienic.The major growth drivers in harvest-home juice market are, increase in health consciousness among consumers, increase in available incomes, and more sophisticated cocktail culture.1 Indian reaping juice marketIt is a newly developing and an unorganized market. Only recently this sector is getting more organized and attracting more players in the market. Though the unorganized tree shop vendors dominate this market, Indian consumers are moving towards home run fruit juice because of their improvement in health consciousness. Indian fruit juice market is having a net-worth of 275 crores as of outright and increasing at a rate of 35% to 40% per year. This study was conducted to identify the animate market structure, industry tr ends, existing players and their status in the market, growth possibilities and consumer behavior of existing fruit juice consumers. The study was conducted to understand the total market give-and-take so that it can guide any new entrant in this sector in Indian market would get befitted. The study includes two primary and secondary search. Primary research was conducted across India. Primary research involves collecting information from two consumers and retailers so as to get fracture understanding approximately the market. This research report can serve as a guide for any new entrant who wants to enter in this fruit juice market in India. The report can also serve as a basic industry information resource.The grassed fruit juice market in India is estimated to be worth Rs ergocalciferol crore organised fruit beverage market (nectars, drinks and juices combined) and the segment is growing at to the highest degree 30 per cent per annum. Big players like Dabur, Pepsi, Godre j and Parle Agro are already in the market and in view of the swift growth in the market, newcomers like Surya Foods and Agro, Mother Dairy, Ladakh Foods, Pioma Industries have come into the market with new products in the recent days.Chief Executive Officer of Dabur Foods told Food Beverage intelligence operation in an interview that the market mete out of Daburs Real Fruit juice is now 60 per cent. No doubt Daburs Real Fruit juice is the market adopter followed by Pepsis Tropicana. The two major fruit juice makers in India, Tropicana and Dabur are vent all out to tease Indian taste buds with ethnic flavours. However, Godrejs Jumpin is slowly achieving its infinite in the fruit juice market. Godrej Industries Foods Division has introduced fruit juices under the Xs steel, which earlier only consisted of nectars. Parle Agros Frooti and N-Joi too are doing well in the market. Delhi NCR- ground Surya Foods and Agro Ltd, manufacturers of Priyagold biscuits, has forayed into the juices segment. Mother Dairy has recently launched the Safal disfigurement of juices. Safal is presently available in orange, mixed fruit, grape and an orange-apple combination. Ladakh Foods, makers of the Leh Berry seabuckthorn berry drink, has now launched an apple-peach combination juice and a mixed fruit variant. Ahmedabad-based Pioma Industries, makers of the Rasna brand of soft drink concentrates, test marketed a diluted mango juice in Andhra Pradesh recently. There are now racks filled with fruit juices, nectars and drinks.Traditionally, the Indian life style has a predilection for fresh fruits and vegetables or those processed at home. There is a sea change. People, are now increasingly going in for fresh fruit vending from kiosk fountains, which produce second base juices from fresh fruits in the presence of the consumer. It could be due to the non-avail baron of hygienically produced and levelheaded products with the use of preservatives. That is why some of the real but branded fruit juices launched in the late 1980s and early 1990s did not succeed. There has been a steady rise in the capacity, production and capacity custom in the fruit processing units. The processing capacity had gone up from 0.9 mn tonnes in 1990-91 to 2.1 mn tonnes in 1999-00. The capacity utilisation alter from 31% to 47%, with the production in 1999-00 estimated to have increased to 980,000 tonnes. The official reports do not show any substantial increase in total output although branded drinks do show a healthy improvement. There is no general acceptance of the product forms in the fruit drinks market. The consumer is basically concerned that it is a fruit juice and not a synthetically constituted product. Accordingly, the first partitioning is between real fruit drinks and synthetic drinks. The former are based on natural fruit glop or juice. The others are synthetic products containing fruit flavours. Among the fruit juice beverages are fruit juices (Pepsis Tropi cana), nectars (Daburs Real) and fruit drinks (Frooti and Slice). each(prenominal) these are real, reconstituted from fruit pulps or concentrates. The leading fruit juice brands include Real, Onjus, Tropicana, Frooti, Jumpin. The fruit drinks are in general based on oranges, mangoes, pineapples, grapes, apples, guava and tomato. They only differ in pulp issue the juices have over 85%, nectars (20% to 85%) and fruit drinks (less than 20%). The branded fruit juices market inclusive of nectars is placed at about Rs 10 bn. The pure fruit juices are the preferred drink among the fruit drinks. This segment is growing at around 10% annually. The market for fruit juices is rested to grow to Rs. 7.50 bn by end 2009-10 from nearly Rs. 4.75 bn presently. Dabur Foods has launched Real Junior, a 125 ml pack of apple and mango drinks for children below 6 years of age.Pioma Industries, the maker of Rasna brand of soft drink concentrate, was negotiating a critical point venture with Del Monte Foods of the USA.Del Monte is the largest producer of canned fruits and vegetables in the US.Rasna has set up its first production unit in Himachal Pradesh, with an installed capacity of 350,000 cases a year. The Prakash Chauhan-controlled Parle Agro was to launch two new fruit beverages, besides widening its product portfolio by getting into jams and ketchups. The poduction units were planned in Maharashtra. The company slashed the prices of Frooti and Appy to get together market share. Merisant India, a subsidiary of Merisant USA and makers of Equal, the low calorie sweetener, has introduced a powdered soft drink under the brand, Fix, in the Indian market. The drink is low in calories and go forth be sold in opposite flavours peach, orange, mango, pineapple and lemon.Juice is the liquid naturally contained in fruit or vegetable tissue. Juice is prepared by mechanically squeezing or macerating fresh fruits or vegetables without the application of heat or solvents. For example, orange juice is the liquid extract of the fruit of the orange tree. Juice may be prepared in the home from fresh fruits and vegetables using variety of hand or electric juicers. Many commercial juices are filtered to remove part or pulp, but high-pulp fresh orange juice is a everyday beverage. Juice may be marketed in concentrate form, sometimes frozen, requiring the user to add water to reconstitute the liquid back to its original state. However, concentrates in general have a noticeably different taste from that of their fresh-squeezed counterparts. Other juices are reconstituted before publicity for retail sale. Common methods for preservation and processing of fruit juices include canning,pasteurization, freezing, evaporation and spray drying.Theoretical background aligningIn marketing, military position has come to mean the process by which marketers try to spend a penny an effigy or identity in the promontorys of their target market for its product, brand, or organiza tion.Re- arrangement involves changing the identity of a product, relative to the identity of competing products, in the embodied thoughts of the target market.What most will agree on is that emplacement is something (perception) that happens in the minds of the target market. It is the aggregate perception the market has of a exceptional company, product or service in relation to their perceptions of the competitors in the same category. It will happen whether or not a companys management is proactive, reactive or passive about the on-going process of evolving a position. But a company can positively influence the perceptions through and through enlightened strategic actions.Positioning is about how you differentiate your product or service in the mind of your prospect.The Essence of PositioningPositioning is a new approach to converse, announce andmarketing. It is an organized system for finding a window in the mind of your prospect in order to position effectively over at t hat place a product a merchandise, a service, a company, or a person against its main competitors. This system is based on the concept that parley can only take place at the right time and under the right circumstances. The mind accepts only that new information which matches its current state. It filters out everything else. In other words, locating is a process by which a psychological anchor has been placed into the minds of prospects so that they come to deal one special(prenominal) person or company over another.Positioning is what you do to the mind of the prospect you look for the solution of your problem internal the prospects mind. Anyone can use positioning strategy to get ahead in the game of life.Positioning is a process that focuses on conveying product cherish to buyers, resulting in a family of documents which drive all outbound communications. merely in recent years, it seems as if positioning has devolved into a document of light-headed superlatives that c onvey nothing as they attempt to trick the customer into buying the product. The best positioning clearly states how the product will solve specific customer problems.Positioning a Brand in the MarketplaceWithout the ability to de-average a companys consumer base, marketing activities would wander off in the general precaution of a theoretical average consumer. Yet too often, segmentation efforts dont lead to business actions that make gradeMany customer analytic models and segmentation systems provide insight into who should be targeted or what message to deliver but the models themselves rarely offer an optimum long-term contact strategy. What can you do to attain ongoing and consistent profitability from your customer segments?A brands position is the set of perceptions, impressions, ideas and feelings that consumers have for the product compared with competing products. Marketers plan positions that give their products the greatest returns in selected target markets, and the y design marketing mixes to create these planned positions.In planning their positioning, marketers often prepare perceptual maps that show consumer perceptions of their brand versus competing brands on attributes that are important to the consumer, whether functional or symbolic.Perceptual Maps are utile for these key reasons * Assessing strengths and weaknesses relative to competing brands along certain criteria important to the customer. o This is revealed by the positions of the marketers brand and competing brands along the axes.http//www.brandingstrategyinsider.com/brand_positioning/5 Factors of Brand PositioningLast week, I wrote about how to break through branding clutter by delineate yourbrands unique value proposition then owning it in the the marketplace thereby establishing your brands position. Today, lets take a look at the 5 main factors that go into defining a brand position.1. Brand AttributesWhat the brand delivers through features and benefits to consumers.2. Co nsumer ExpectationsWhat consumers expect to receive from the brand.3. Competitor attributesWhat the other brands in the market offer through features and benefits to consumers.4. PriceAn easily quantifiable factor Your prices vs. your competitors prices.5. Consumer perceptionsThe perceived quality and value of your brand in consumers minds (i.e., does your brand offer the cheap solution, the good value for the money solution, the high-end, high-price tag solution, etc.?).http//www.corporate-eye.com/blog/2008/07/5-factors-of-brand-positioning/Positioning conceptsMore generally, there are three types of positioning conceptsFunctional positionsSolve problemsProvide benefits to customers drive favorable perception by investors (stock profile) and lendersSymbolic positionsSelf-image enhancementEgo appellationBelongingness and social meaningfulnessAffective fulfillmentExperiential positionsProvide sensory excitantProvide cognitive stimulationProduct Positioning ProcessGenerally, the pro duct positioning process involvesDefining the market in which the product or brand will compete (who the relevant buyers are)Identifying the attributes (also called dimensions) that define the product spaceCollecting information from a sample of customers about their perceptions of each product on the relevant attributes particularize each products share of mind run across each products current location in the product spaceDetermine the target markets preferred combination of attributes (referred to as an ideal vector)Examine the fit betweenThe position of your productThe position of the ideal vectorPosition. mensuration the positioningPositioning is facilitated by a graphical technique called perceptual mapping, various survey techniques, and statistical techniques like multi dimensional scaling, factor analysis, conjoined analysis, and logit analysis.Repositioning a companyIn volatile markets, it can be necessary even urgent to reposition an entire company, rather than well(p) a product line or brand. Take, for example, when Goldman Sachs and Morgan Stanley suddenly shifted from investment to commercial banks. The expectations of investors, employees, clients and regulators all make to shift and each company will need to influence how these perceptions change. Doing so involves dislodge the entire firm.This is especially true of itsy-bitsy and medium-sized firms, many of which often lack strong brands for individual product lines. In a prolonged recession, business approaches that were effective during healthy economies often get under ones skin ineffective and it becomes necessary to change a firms positioning. Upscale restaurants, for example, which previously flourished on expense account dinners and corporate events, may for the first time need to stress value as a sale tool.Repositioning a company involves more than a marketing challenge. It involves making hard decisions about how a market is shifting and how a firms competitors will react. Ofte n these decisions must be made without the benefit of sufficient information, simply because the definition of irritability is that change becomes difficult or impossible to predict.A strong strategic plan with a new and powerful dynamic can help oneself you get there. strategical Planning with a major emphasis on Strategic Repositioning harnesses your unique strengths to achieve success in the marketplace. Strategic Repositioning is a process by which your company identifies its strategic competencies and discovers slipway to exploit those strengths in order to propel your firm into a more prosperous and competitive future. Incorporating this element into the strategic planning process can help turn a struggling business around or guide an already successful enterprise into new and profitable territory.http//jobfunctions.bnet.com/abstract.aspx?docid=379140tag=contentcol1Brand Repositioning is changing the positioning of a brand. A particular positioning statementmay not work w ith a brand.For instance, Dettol toilet goo was positioned as a beauty soap signly. This was not in line with its shopping centre values. Dettol, the parent brand (anti-septic liquid) was known for its ability to heal cuts and gashes. The extensions beauty positioning was not in tune with the parents germ-kill positioning.The soap, consequently, had to be repositioned as a germ-kill soap (bath for grimy occasions) and it fared extremely well after repositioning. Here, the soap had to be repositioned for image mismatch. There are several(prenominal) other reasons for repositioning. Often falling or stagnant sales is responsible for repositioning exercises. After examining the repositioning of several brands from the Indian market, the following 9 types of repositioning have been identified. These areincrease relevance to the consumerIncreasing occasions for useMaking the brand unspoiledFalling salesBringing in new customersMaking the brand contemporaryDifferentiate from other br andsChanged market conditions.http//drypen.in/branding/brand-repositioning-and-types-of-brand-repositioning.htmlFrooti light N JuicyBy Parle Agro foodsBackground of Parle Agro foodsParle Products Pvt Ltd based in Mumbai, India has been Indias largest manufacturer of biscuits and confectionery, for around 80 years. Makers of the worlds largest sell biscuit, Parle-G, and a host of other very familiar brands. Its reach baffles even to the remotest villages of India. Many of the Parle products biscuits or confectioneries, are market leading in their category and have won acclaim at the Monde Selection, since 1971. With a 40% share of the total biscuit market and a 15% share of the total confectionery market in India, Parle has grown to become a multi-million dollar company. They have recently entered the snacks market.Biscuit SnacksParle-G (Largest selling biscuit in the world.)KrackjackMonacoHide SeekHide Seek MilanoCheeslingsMusst BitesDigestive MarieParle Marie take out Sh aktiMusst ChipsMusst StixMonaco Smart Chipsparle twenty-twentyHippoConfectioneriesPoppins (Sugar based candies in various fruit flavours.) logical argument (Chocolate candy)Xhale (Mint)Mango BiteKaccha Mango BiteKismi ToffeeMintroxButter shapeOrange CandyDrinksMango Frooti (mango juice)LMN (lemonade)Saint Juice (flavoured juices sold in tetra-packs)Appy classicAppy fizzBaileyV3 fitnessAbout FrootiFrooti is Indias legendary and iconic mango drink. It has been around for over two and a half decades now. Pretty much what Nike or McDonalds or Guinness or Ikea is to the world, Frooti is to India. Theres not one person in India who hasnt had a Frooti. By sheer numbers and its depth of distribution in India and availability in more than 20 countries, Frooti is perhaps one of the largest selling mango drinks in the world.During the brand study, here are a few things we realized. When Frooti came into existence over 2 decades ago, it came in as a very contemporary and youthful drink. Froot i brought Tetra Pak into India. It was cool to have a Frooti. Even the imaginativeness in Frooti communication was way ahead of anything else the Indian society was uncovered to. Who can forget classic Frooti commercials in early 80s with pretty girls in mini skirts, hula-hoop, use of CG, people diving into a pool of Frooti, etc., All these, India hadnt seen before. We realized being cool wasnt alien to Frooti, it was just about reinstating the cool factor. Relevantly.However, there was a itsy-bitsy something we had to tackle going further. Over the years Frooti was blessed with a lot of child and adolescent loyalists. There have seldom been birthday parties without a Frooti. Can we without alienating them create a similar cult following with youth? With about 60% of India being a part of that segment.We were aware that frooti had made attempts in the past. Digen Verma by Everest and Bindass campaign by Grey, were both act. While they did create an initial buzz, they lacked a lon g term strategy or longevity perhaps. We concluded.So, the exercise was essentially to take at a strategic idea thats much sharper and a thought or a philosophy Frooti can own and create itself for years.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 nowadays 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 piece and a plastic finishing that ensured tamper proof and enhanced shelf life.Lured by t he success of Frooti, there was a lot of new launches in the TFJ market. Players like Godrej with Jumpin, kissan etc tried their mint in this market but failed to dislodge Frooti.Frooti FalteringFrooti was launched by Parle Agro in 1984. It was the first tetrapak drink to be introduced in the Indian market. By 2000, Frooti had a majority market share of the Rs. 300 crore tetrapak fruit drink market.However analysts felt that this 16-year-old brand had been losing its arouse over the years. The brand, which scored a 100 on product likability and quality and a 95 on product recall, had cast outped in the top-of-the-mind ranking to 60, from 95 two years ago.The sales of Frooti also had dropped over the years. The situation worsened with the increase in competition.In addition to the menace it faced from soft drinks marketers, Frooti witnessed heightened competition in its own segment tetrapak fruit drinks2 and juices. With pressure mounting from all sides, Parle Agro was forced to re call in its strategy. To revive the drop appeal of the brand, it decided on a major relaunch strategy, which focussed on changing its positioning.The relaunch of Frooti aimed at positioning Frooti as a fun, trendy and modern-day drink targeted at the youth segment, a marked change from its initial positioning as a drink for kids. Said, BL Venkateshwar, Parle Agro vice-president There has been a change in the consumer psychology.Today sub-segments have been created with the 12-15 year olds calling themselves teenagers and 9-12 year olds as pre-teens. These segments are turning into decision-makers of today with an increase in pocket money. The segment of 16-19 years olds is the new impulse category we are targeting. This segment was therefore strategically very important for Parle Agro.ChallengesFrooti is basically a nectar based drink so it is not 100% fruit juice, it also has 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 click. 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.Repositioning of the brand FrootiFrooti 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 has 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 burnish of the bottle changed to more bright mango color with lot of artistic creation added to it.Frooti has come out with a new campaign. The brand had gone in for a complete makeover. The packaging a nd the positioning has changed. Infact Frooti for the past few years has been trying to catch hold of a consistent theme.It had earlier move away from the FreshNJuicy positioning . From there onwards, the brand was on a turned on(p) wicket and was not quite settling on a positioning. It had the Bindaas positioning and later Frooti- another name for Mango theme. But the brand was not quite stable on those platforms.Reasons of RepositioningLoosing market appeal gross sales were droppedIncrease in CompetitionThreat from soft drink marketers kindred segment Competition,Tetra pack fruit drinks juicesVarious moves as part of repositioningNew packagingThe new Frooti has a new modern packaging. The prize of colors and the logo has been tweaked to make the brand more contemporary. right off the packaging is lot more neat and cool.What is more stiking is the change in the positioning of Frooti. Last year, the brand tried to pitch itself as an alternative to mango. Now the brand is tr ying to be more radical and a little mad.The new campaign is based on a simple consumer observation. closely of us which drink Frooti Tetrapack will try to chase the last drop of Frooti. This habit has been continuing for generations. Knowingly or unknowingly we make humorous sounds using the straw when indulging with Frooti. And we all had the habit of breaking those packs for that sound. The room had tried to capture all these in the new communication.New taglineThe brand also has adopted a new baseline Why ferment Up. I think this positioning is a powerful idea which can be sustained for many years provided the creatives are able to think fresh. Even in the new avatar, the brand is retaining the old famous tagline Fresh N Juicy which is good since Frooti has a very strong association with that tagline.Emotional iconsAnother interesting move by the brand is the creation of Mango-emotions. The brand will now be using mangoticons in its communication which is a really smart id ea. The brand using emoticons c