JUICY BATTLE

Presented by: U
 Thirst
Need Family
Quenching

Product
Beverages
Family

Non-carbonated
Product Class Beverages

Product Line Juice

Packaged
Product Type
Juice
ROUND #1
 Vision

• To become world’s • To provide largest

premier beverage range of refreshing,
industry and thereby preservative free fruit
creating healthy beverages for the
financial rewards and health and well being
growth of every household
 STRATEGIC INTENT

COMMITMENT COMPETENCY
3. Promoting health & 2. Strong product portfolio
wellness 3. Developing niche
4. Focus on product business
reformulation 4. “Ayurvedic” foundation
 MARKET STATS
Carbonated Noncarbonated
Unorganised Organised
Total Market
Rs4418Cr 14%
3800

612 Total Market

Rs4392Cr

86%
Total soft drink Total Non-carbonated
(Organised) market
 MARKET SHARE
Non-Carbonated beverage Fruit juice & Nectar
1%
3%
9%
Total: Total:
Rs615Cr
27% 2% Rs215Cr

Drink
8%
65% 55%
30%

Real Tropicana
Fruit juice Nectar Drink NBBD-Safal Parle-Appy
Godrej-Xs Other

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

 Market share
Real Tropicana Due to new entrants
70
62
60 58
55
50
MS Dabur
40 38
34 35
30

20

10 Trop
0
2004 2005 2006
Time
Net sales contribution of different Dabur business
Particulars Rs Cr

Net revenue 1039.6

(%Growth) (17.8)
PAT 126.6
(%Growth) (12.2)
EPS 2.2

CCD CHD DFL IBD Others

DFL 190
(%Growth) (27)
67% 8% 11% 13% 1%
PBIT(DFL) 13.6
FOOD (% Growth) (15.8)
11% Juices 66.4
( % Growth) (29)
Growth only 2nd to
CCD business(30%)
Real’s-Contribution to top line
Real Real active Junior Others
DFL=190Cr

Real active
Real 9%
80%

Others Junior
5% 6%
 Net sales contribution of different Pepsico business

Particulars $ Mn

Net revenue 32562

(Rs147KCr)

(11)
(%Growth)
EPS 2.6
(%Growth) 15
PI FLNA PBNA QFNA PI 11376
(Rs52KCr)
35% 32% 28% 5%
(%Growth) (15)

International PAT 1607

(Rs7KCr)
35% (21)
(% Growth)
 TREND CHART-Dabur
1600 16

13.8
1400 14
11.7
1200 12

8.8
1000 10
Rs Cr

Net revenue
800 8
Profitability
6.9
600 6

400 4

200 2

0 0
2003 2004 2005 2006
 TREND CHART-PepsiCo

Net revenue Profitability%

40,000 18.00%
16.06%
35,000 16.00%

14.39% 14.00%
30,000
13.23%
12.52%
11.95% 12.00%
25,000
$ Mn

10.00%
20,000
8.00%
15,000
6.00%

10,000
4.00%

5,000 2.00%

0 0.00%
2002 2003 2004 2005 2006
 9 TROPICANA
8
REAL
Objective(3) 3 2
Strategy(3) 3 2
Market share(4) 3 4
 Product Category
Hi involvement Low involvement

JUICE –Variety
seeking product
Significant Brand
Difference

Few Brand
Difference
 BUYING PATTERN

81
% 53%
19 47%

Planned Unplanned Impulsive Non-Impulsve

Consumption Pattern
100% 2004

Consumption pattern
90% 2006

80%
70%
60%
50%

40%
30%
20%

10%
0%
2004 2006

Inhouse consumption Outside consumtion

 Facts about industry
•Highly seasonal demand
30 •Fruit production=9 Mn tonne
25 (growth=12%)
Demand gap •Total soft drink
20
Mn lts/mnth

market(juice+carbonated)=US$1Bn
15
•Juice Market= 230 Mn Ltr
10
•Packed juice=1%
5
•Consumption is a group activity
0
•60% prefer to see the juice they
MAX MIN buy
Cons/mnth
 SEGMENTATION
Geographical TROPICANA REAL
Location Metros/mini metros Metro/mini metro

Demographic
Age Bachelor/newly Mothers/children 6-
married/FN1/FN2 14/young executives
Income Hi spendable income/hi asset Hi spendable income/hi
and saving asset and saving
Education/occupati Educated/executive/worki Educated housewives/
on ng professionals executive/working
professionals
Social Class SEC-A/SEC-B SEC-A/SEC-B
Psycho graphic
Lifestyle Actualizers(status Believers/strivers
oriented)/Experiencers/strivers

Personality Self-confidence Sociability

Behavioral
Knowledge of the aware aware
product
 GROWTH OPPORTUNITY
• 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
 Product Mapping
Variety seeking R-Junior
T-Healthy kids
Tropicana
Real
T-fibre Real
T- organic

R-Active
T-Light n healthy

Health seeking
 Price Mapping
Price
Rs 3-4/lt

T T

R R

Fruits flavours
Fruits+veg flavours
TAILORING STATEGIES TO SEGMENT

Smart Sport Symbol Multiple Pack Sizes

For identifying healthier For varied consumption
lifestyle products needs and occasions

Exotic Range of Flavors Spin-Cap Tetra Pack

For varied consumption Retaining freshness &
tastes and choice preventing adulteration
 7 TROPICANA
9
REAL
Segmentation(4) 2 3
Growth opportunity(3) 3 3
Tailoring needs(3) 2 3
ROUND #2
CUSTOMER’S NEED

• Fun for you products – • “Preservative free”

to- wellness products drink
• Addresses safety • Various flavours n
needs variants
• Real Active orange-
carrot
 GETTING CLOSER
• Portraying • TVC uses lifestyle
youthfulness and imagery
freshness • Communication
• Communicating directed at distinct
benefits of good health audiences
 FOCUS ON SOLUTIONS

• Low sugar/low fat/low • Great taste and

Na beverages wholesome
• Committed to support nutrition
active lifestyles • Complete family
package
 8 9
TROPICANA REAL
Needs(4) 3 3
Communication(3) 2 3
Solution(3) 3 3
 CREATE COMPETENCIES

• Superior technological • Trusted name in

know-how natural health care
• Huge sourcing over 100 yrs
capacities • Healthy product mix
of natural & herbal
products
 DEVELOP CABABILITIES

• Linkages-upstream in • Setting up strategic

the supply chain manufacturing bases
• Hub for orange Juice • Implemented SAP to
– 11% of brazil production enhance quality of
– 2Mn mt tn of orange supply chain
production
• Extensive distribution
network
 INTEGRATE FUNCTIONS

• BPT(business process • DARE

transformation) program(driving
achievement of retail
excellence)
• Point of sale software
at stockists
 8 7
TROPICANA REAL
Competency(4) 4 3
Capabilities(3) 2 2
Integration(3) 2 2
ROUND #3
Competitive Advantage

• Core competency in • First mover advantage

beverage industry.
• Learning curve advantage
• Powerful brands
• Innovation in product
• Internationally tested and offering
proven flavors
• Redefining traditional
marketing dynamics
 BEAT COMPETITION
through innovation

• Above-the line & • Novelty in concept

below-the-line -”mixology”
promotion • Promoting Juice as
• Promoting as a health social drink
drink • “Customized” juices
 SUSTAINING
through branding

Consumption Consumption
11% 15%

Consumption/Awareness=0.64 Consumption/Awareness=0.57
 Equity Vs Image
Tropicana
Hi
Brand equity

Real
L

L Hi
Brand image
 6 8
TROPICANA REAL
Create(4) 3 4
Beat(3) 1 2
Sustain(3) 2 2
FINAL
ROUND
SOCIAL RESPONSIBILITY

• Sustenance through • Sundesh-

“tripple bottom line” Welfare organization
• S.M.A.R.T-lifestyle • Committed to
program for healthier maintain ecological
living balance
• Reforestation of
Himalayas
RECOGONISE ENVIRONMENTAL CHANGES

• Training and • Calorie

educating farmers consciousness
• Engaging in water • New generation
harvesting programs getting attracted
• Creating health towards packed foods
awareness programs
 5 8
TROPICANA REAL
Environmental(5) 2 4
changes
Responsibility(5) 3 4
 CUSTOMER FOCUS

• Customer feedback. • Preservative free

• Constant endeavor • Taste close to real fruit
towards innovation • Full of nutrients &
• Commitment towards vitamins.
community service • Fruit + vegetable
concept.
 Benchmarking
• Practice EPA hierarchy: • The flagship brand of
Reduce, Reuse, Recycle. Dabur Foods maintains
• We must always strive to: leadership status (55
Care for customers, percent market share)
consumers and the world • The company has decided
we live in. to adopt US GAAP.
• duly NABL accredited • Dabur Real gets HACCP
under ISO/IEC 17025 certification.
• Sell only products we can • TQM and TPM are strictly
be proud of. Practiced
 2 3

7 6
TROPICANA REAL
Focus(5) 4 4
Benchmarking(5) 3 2
Qualitative Research System
Potential
market
• 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 . 96%

• Indian consumers like to add 4%

sugar when they squeeze fruit

juice. We ensure that we cater
to our customers' taste and
preferences, and have added Fresh juice Packed juice
sugar to our juices.
 SCORE CARD
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
AND THE WINNER IS…