A PROJECT REPORT ON

MARKET SHARE OF REAL JUICE IN THE GHAZIABAD MARKET

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION (B.B.A.)

SUBMITTED TO: Ms. Monika Sharma ABDAL

SUBMITTED BY: AAZAM

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SAS INSTITUTE OF INFORMATION TECHNOLOGY & RESEARCH MOHALI

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Acknowledgement
A task is never as big as the power and support provided to fulfill that task. The completion of a task is never a one man effort, it is the effort and hard work of innumerable number of people who directly or indirectly help in the project work and enlighten the path of success. The satisfaction and euphoria that accompany the successful completion of any task would be incomplete without the mention of the people who made it possible and whose constant guidance and encouragement heads all efforts with success. I take this opportunity to express my deepest sense of gratitude and regards to Mr. Sunil Sharma, ZSM, Dabur Foods and Mr. Harit Shroff, ASM, Dabur Foods for their constant encouragement and valuable insight, guidance and facilities at all phases of the project. I would also thank Ms. Monika Sharma for his valuable guidance, inspiration and encouragement. Lastly I would like to take this opportunity to thank all those who criticized me from time to time regarding my approach towards the project as their criticism acted as a catalyst for my zeal to succeed.

AAZAM ABDAL

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Project Objectives
To map the market share of Real Juice in the Ghaziabad market. To study the consumer behavior to enhance the market penetration of real juices. To launch the summers brand Coolers.

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Letter Of Transmittal
It was a pleasure working with Dabur India. I had a great learning experience during the duration of this project. The report is complete as per the requirements of the project. I hand over my work to Dabur India and hope that the report helps them in increasing their sales and the suggestions helps in understanding the problems the company is facing.

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Executive Summary
The study can be effectively divided into three parts: 1. To map the market share of the Real Juices in the Ghaziabad Market. 2. To map the consumer preferences to enhance the market penetration of the juices. 3. To launch Coolers, the summer drink from Dabur Foods.

To complete the study effectively the knowledge of the market and the operations of the market, along with the area where the study needs to be done was necessary, thus the initial period of the training included the sales of the real fruit juices in whole of the Ghaziabad market along with the team of the stockist, the sales was done for the period of approximately two weeks spanning from 5th to 19th of April, 2006. With the above given objectives in mind, a primary research was conducted in the month of April and May. The data was collected through questionnaires which were administered to various retailers in the Ghaziabad region. Mainly four markets (Raj Nagar, Kavi Nagar, Patel Nagar, Gandhi Nagar) were covered in the process of mapping the market share of the Real Juices, the total shops covered in these areas included those shops where the Real Juice is places as well as those shops where the product is not places but can be placed. During this period the company also engaged me in the launching of its summer drink Coolers in the market and thus the initial part of the study was conducted along with the launch of coolers. The above studies gave broadly the following results: In case of market share the Real Juice brand is the pioneer in the Ghaziabad market with the approximate market share of 72.76%, followed by Freshgold ( a Priyagold Product) and Leh Berry. The existence of the national competitor Tropicana Juices was negligible. The study also contains the various problems faced by the product in the market and also gives the recommendations

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which can be used to overcome those problems. These are covered in the later chapter of the report. In mapping the consumer preferences the study included what are the preferences of the consumer while choosing a particular brand and why does the consumer drinks juices etc which are analyzed in detail in the later chapters of the report. The sample size for this study was 189 consumers in the highly developed as well as little less developed areas of Ghaziabad. The study also concentrated on the demography of the consumers who prefer drinking packed juices.

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Table Of Contents
Executive Summary Chapter 1 1.1 Indian Juice Industry 1.2 Company Profile 1.2.1 1.2.2 1.2.3 1.2.4 1.2.5 1.2.6 1.2.7 Sales Vision Of The Company Core Values Strategic Intent Vision History Field Force Distribution Network

1.3 Product Introduction Chapter 2 2.1 Literature Review 2.2 Relevance Of Study 2.3 Need Of Study Chapter 3 Scope Of Study Research Deisgn Sources Of Data Target Population Sampling Sampling Design Sample Size Procedure For Data Collection Page 2 of 65

Chapter 4 Launch Of Coolers Chapter 5 Promotional Schemes Of Various Competitors Chapter 6 Data Presentation of Market Share Research 6.1 Number of Shops Covered In Different Areas 6.2 Category wise Breakup of Shops In Raj Nagar 6.3 Category wise Breakup of Shops In Kavi Nagar 6.4 Category wise Breakup of Shops In Lohia Nagar 6.5 Category wise Breakup of Shops In Patel Nagar 6.6 Category wise Breakup of Shops In Govindpuram 6.7 Total Number of Shops-Category Wise 6.8 Juice Brands Present At Various Outlets 6.9 Reasons For Selling Real Juices 6.10 Reasons For Not Selling Real Juices 6.11 Problems Faced By Retailers Regarding Real Juices 6.12 Variant Wise Sales Of Real Juices 6.13 Market Share Of Various Juice Brands Chapter 7 Data Presentation of Consumer Behaviour Research 7.1 Preference Regarding Juices 7.2 Consumer Sex Ratio 7.3 Consumer Age Groups 7.4 Consumer Annual Salary 7.5 Consumer Buying Behaviour 7.6 Occasions 7.7 Reasons For Drinking Juices 7.8 Preferred Juice Brand Page 2 of 65

7.9 Reasons For Preferring Real 7.10 Reasons For Preferring Fresh Gold 7.11 Reasons For Preferring Leh Berry 7.12 Reasons For Not Continuing With Real 7.13 Reasons For Not Drinking Packed Juices. Chapter 8 8.1 Observations 8.2 Recommendations 8.3 Limitations References Enclosures

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List Of Tables
Serial Number 1 2 3 4 5 6 Table Number 2.1 4.1 4.2 4.3 4.4 6.1 Page Number 34 38 39 39 40 44

List Of Figures Serial Number

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Figure Number
6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 7.1 7.2

Page Number
43 44 45 45 46 46 47 47 48 49 49 50 51 52 53 Page 2 of 65

16 17 18 19 20 21 22 23 24 25 26

7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13

53 54 54 55 55 56 57 57 58 58 59

Chapter 1 1.1 Juice Industry In India

With people turning more health conscious, the non-carbonated beverage segment has become one of the fastest growing and most exciting businesses at the moment. Evolving from drinks containing a hint of herbs or vitamins, juices have become an important delivery vehicle for efficacious amounts of nutritional ingredients. Juices are unusual products in that everyone expects to try new varieties, even from established brands. While all segments of the beverage market are evolving, the growth seems to be directed more towards healthy, light and low-calorie drinks, in particular organic and fruit juice varieties.

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The Rs 500 crore non-carbonated beverage market in the country is composed of fruit drinks, nectar and juices. While the fruit drink segment is estimated at Rs 250-300 crore (branded and packaged), the juice market is valued at Rs 150 crore and the nectar is a small category of about Rs 35-50 crore. And the popular brands vying for a share in the sector are Parle's Frooti, Godrej's Jumpin, Coca Cola's Maaza, Pepsi's Tropicana, and Dabur's Real. What follows is an overview of the latest product offerings from different beverage companies.

Dabur's Real fruit juice in 9 flavours

Dabur's flagship brand Real fruit juice is a market leader in the packaged fruit juice category. Real was launched in 1996 and the brand has carved out a niche for itself by claiming to be the only fruit juice in packaged form that is 100 % preservative free. Real with a market share of 55 % offers to its consumers the largest range of 9 juices that comprise orange, mango, pineapple, mixed fruit, grape, guava, tomato, litchi and cranberry. Real Junior, available in 125 ml packs, targets children below six years. It has two favourite flavours of mango and apple enriched with calcium. Real Activ, a 100 % fruit juice with no added sugar, gives the goodness of fruits without adding extra calories. Today, it is the preferred juice drink for the health and fitness conscious young adults. Real Activ is available in orange, apple, and orange-carrot variants. Real Activ orange carrot juice, India's first packaged fruit + vegetable juice, is a combination of juicy oranges and sweet carrots. Coolers, a fruit-based beverage, offers traditional 'cooling' recipes in a ready-to-drink format. It is available in three variants - Aam panna, pomegranate (anar) and watermelon Real juices are offered in hygienic double seal spill proof caps in Tetrapak packaging. Once packed, the 6-layer Tetrapak carton helps retain the freshness of the juice for a longer period of time, thus maintaining the taste and nutrition of the juice. The fruits that Page 2 of 65

go into the juices are sourced from the best sources across the world, the company claims. Dabur Food produces around 50 million litres of juice annually through its state-of-theart facility at Birganj, Nepal. In August 2004, the company commissioned a multi fruit processing facility in Siliguri, in West Bengal, set up by Pasadensa Foods, a wholly owned subsidiary of Dabur Foods Ltd. 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. The plant procures fruits worth Rs 6 crore from West Bengal, North-East, Bihar, Uttar Pradesh, Maharashtra and Andhra Pradesh. It has the highest capacity utilization by processing pineapple, litchi, guava, mango and grape round the year.

PEPSI'S TROPICANA
Pepsi's Tropicana brand fruit juice has registered double digit growth and has outpaced the growth of the packaged fruit juices market in India. India is a very important market for Tropicana and is among the top 10 biggest markets for the brand. The company sources orange juice concentrates from Brazil. Tropicana is available in orange, apple, grape and cranberry flavours and a cocktail in Ruby-red. They come in Tetrapaks of one litre and PET bottles of 500 ml and one litre. Pepsi also markets an energy drink for the sports personnel, called Gatorade, and a sugar-free Diet Pepsi. Pepsi, in association with Hindustan Lever Ltd (HLL) is planning to launch Lipton iced tea in a couple of months. The move is to take on its arch rival Coca Cola which was successful in its business in tea and coffee, both hot and cold in association with McDonald's.

Coca Cola's Maaza

Maaza was launched in 1976, a drink that offered the same real taste of fruit juices and was available throughout the year. In 1993, Mazza was acquired by Coca Cola India. Mazza currently, dominates the fruit drinks industry. Over the years, Mazza 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 Page 2 of 65

naam.'Consumers regard maaza as wholesome, natural, fun drink which delivers the real experience of fruit. It5 is available in SKUs of 200 ml RGB, 250 ml RGB, 125 ml Tetrapak and 200 ml Tetrapak. Besides, Coca Cola is also in the business of tea and coffee under the brand name Georgia Gold. The brand is available at all McDonald's outlets across the country. After the hot beverage did well, the com-pany entered the ice tea and coffee market with Georgia brand last year, again in association with McDonald's. Coke's non-CSD portfolio also comprises powder soft drink concentrate Sunfill, and the bottled water brand Kinley. The company is expected to launch a new low calorie cola and introduce more varieties of flavoured bottled water over the next few months.

Priyagolds Freshgold
Surya Foods and Agro Ltd, the Delhi based manufacturers of Priyagold biscuits, has forayed into the juices segment with the one-litre 'Freshgold'. It has set up a state-of-theart manufacturing facility in Greater Noida with an investment of Rs 25 crore. The plant has a capacity of producing 1.5 lakh litres of juice per day. It is widely available in the market in the packs of 1 ltr and 200 ml. The 200ml packs coming with the brand name of Treat and the 1 ltr pack with the brand name of Freshgold. It is doing aggressive advertising campaign on the television and targeting the kids segment by featuring their advertisements on the cartoon network and pogo channels. Using the pester power of the kids to influence the buying behaviour of the parents.

Ladakh Foods Leh Berry

Ladakh Foods is building a portfolio of products from fruit juices to jams and sauces, based on the little-known seabuckthorn berry, which grows in the Ladakh region. About three years ago it launched Leh Berry, its first fruit juice in Delhi and it's selling it in the more affluent parts of town. But its competitive edge may well lie in its positioning. Ladakh Foods is marketing Leh Berry as a nutrition drink (it prefers not to use the word Page 2 of 65

health, with its bitter, medicinal associations), based on the chronicled nutritional properties of the seabuckthorn fruit. A range of fresh juices and nectars under the umbrella brandname- Leh Berry that are available in the market include 6 Superjuice variants (Seabuckthorn, Pineapple Apple, Apple Peach, Mixed Fruit, Orange and Blackcurrant). Each flavour is enriched with the goodness of Seabuckthorn and packed in aseptic Tetra Pak at the world-class processing & packaging plant of Godrej Beverages & Foods Limited. in Madhya Pradesh. Leh Berry juices and nectars are just the first major steps in introducing the super fruit Seabuckthorn to the huge market in India, thereby moving on to spread its wings on the global stage.

1.2

Company Profile

Dabur India Limited has marked its presence with some very significant achievements and today commands a market leadership status. Our story of success is based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to our partners and stakeholders. The results of our policies and initiatives speak for themselves. Dabur India has been able to post a double digit topline as well as bottomline growth in tough environment, leveraging its age old Ayurveda platform. Also, its unique herbal Page 2 of 65

platform coupled with the franchise value that the brand enjoys mitigates the risk of fierce competition from other FMCG players. Dabur India is one of the oldest FMCG companies of India, operating primarily on the Ayurveda platform. Dabur's product portfolio is comprises a Consumer Care Division (CCD), Consumer Health Division (CHD), International Business Division (IBD) and Foods. The CCD (77% of revenues) comprises health supplements, digestives and The CHD (6% of revenues) includes products of the erstwhile Ayurveda Division The International Business Division (9.1% of revenues) comprises the company's candies, hair care, oral care, baby oils and skin care. and a set of OTC products. business in Dubai, South East, and Bangladesh. 3 Subsidiary Group companies - Dabur Foods, Dabur Nepal and Dabur International and 3 step down subsidiaries of Dabur International - Asian Consumer Care in Bangladesh, African Consumer Care in Nigeria and Dabur Egypt. 13 ultra-modern manufacturing units spread around the globe Products marketed in over 50 countries Wide and deep market penetration with 47 C&F agents, more than 5000 distributors and over 1.5 million retail outlets all over India . CCD, dealing with FMCG Products relating to Personal Care and Health Care.

1.2.1

Sales Vision of the Company

Back To BASICS B: Building skill set of the team A: Availability S: Secondary Focus I: Innovative C: Consumer Focus Page 2 of 65

S: Shelf Dominance

1.2.2

Core Values

Ownership: This is our company. We accept personal responsibility, and accountability to meet business needs Passion For Winning: We all are leaders in our area of responsibility, with a deep commitment to deliver results. We are determined to be the best at doing what matters most People Development: People are our most important asset. We add value through result driven training, and we encourage & reward excellence Consumer Focus: We have superior understanding of consumer needs and develop products to fulfill them better Team Work: We work together on the principle of mutual trust & transparency in a boundary-less organisation. We are intellectually honest in advocating proposals, including recognizing risks Innovation: Continuous innovation in products & processes is the basis of our success Integrity: We are committed to the achievement of business success with integrity. We are honest with consumers, with business partners and with each other

1.2.3

Strategic Intent
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We intend to significantly accelerate profitable growth. To do this, we will:

Focus on growing our core brands across categories, reaching out to new geographies, within and outside India, and improve operational efficiencies by leveraging technology

Be the preferred company to meet the health and personal grooming needs of our target consumers with safe, efficacious, natural solutions by synthesizing our deep knowledge of ayurveda and herbs with modern science

Provide our consumers with innovative products within easy reach Build a platform to enable Dabur to become a global ayurvedic leader Be a professionally managed employer of choice, attracting, developing and retaining quality personnel

Be responsible citizens with a commitment to environmental protection Provide superior returns, relative to our peer group, to our shareholders

1.2.4

VISION

Dedicated to the health and well being of every household. 1.2.5 Company History

1884 1896 Early 1900s 1919 1920

Birth of Dabur Setting up a manufacturing plant Ayurvedic medicines Establishment of research laboratories Expands further Page 2 of 65

1936 1972 1979 1986 1992 1993 1994 1995 1996 1997 1998 2000

Dabur India (Dr. S.K. Burman) Pvt. Ltd. Shift to Delhi Sahibabad factory / Dabur Research Foundation Public Limited Company Joint venture with Agrolimen of Spain Cancer treatment Public issues Joint Ventures 3 separate divisions Foods Division / Project STARS Professionals to manage the Company Turnover of Rs.1,000 crores

1.2.6

Field Force

Head Office

Zonal Sales Manager

Area Sales Manager

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Sales Officer/ senior sales manager

1.2.7

Distribution Network

Factory (Transfer Of Goods), No Invoice C&F Agents Primary Sales( Invoiced) Stockists / Dealers
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Secondary Sales(Invoiced) Retailers / Wholesalers Tertiary Sales Consumer

The tagline of Dabur Foods is:

Stay healthy, stay fit and eat only nature's best. The Foods category includes products from Dabur Foods and the Family Products Division of Dabur India Limited. Dabur Foods, set up in 1996 as a 100% subsidiary, introduced Indian consumers to the concept of freshness and convenience in processed foods. It is one of the growth drivers of Dabur, with leading brands like Real Juices and Hommade cooking pastes. Dabur Honey of the Family Products Division is the largest branded honey with over 40% of the market share.

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1.3

Real Juices Introduction

The flagship brand of Dabur Foods, Real Fruit Juice is India's leading packaged, 100-per cent preservative free fruit juice brand offering consumers the great taste and wholesome nutrition of freshly squeezed juice in a hygienic and attractive pack. It offers the largest range of eight juices: orange, mango, pineapple, grape, guava, mixed fruit, tomato and litchi. Dabur Foods is the first juice company in India and among the top five companies in the world to use the latest spin cap tetra pack, cold fill technology and spill-proof double seal cap for packaging Real. Real was recognised as the 'fastest growing brand' for 2001-02 in the first ever beverage industry seminar in India. Real Fruit Juice is a market leader in packaged fruit juice category. Real Fruit Juice is India's first and only packaged fruit juice brand to get SGS (Societe Generale de Surveillance) certifications for high safety standards used in packaging that conform to the stringent HACCP and GMP standards. The non-carbonated beverages sector can be classified as Fruit drinks, Nectar and Juices. The classification is based on the % of the fruit pulp content in the beverage. Fruit drink has to have minimum fruit pulp content of 10%, while Nectar needs to have a minimum fruit pulp content of 25%.

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Real Orange Juice

delicious way to get Vitamin A and C that your body requires in a day, that keeps you active all day long. Orange juice is an ideal liquid food to boost up the immunity level. It is fat free and is therefore suitable for all ages. It is available in tetrapacks of two sizes 1 ltr and 200ml costing Rs 65 and Rs 15 respectively. The Ingredients of this juice include: Orange juice concentrate, water, sugar, citric acid, salt and Vitamin C. Real Juice Orange is made with best oranges to ensure consistent quality around the year. It is a simple and The nutrition facts of this juice per 100gm are as follows:

Nutrition Facts per 100ml

Energy Protein Fat Sodium Vitamin C Vitamin A Vitamin B1 Vitamin B2 Calcium Iron

56 Kcal NMT 1g Negligible 5mg 12.5 mg 500 mg 50 mg 50 mg 2.5 mg 0.25 mg Page 2 of 65

Carbohydrates NLT 13g

Real Mango Nectar

Energy Protein Fat Carbohydrates Sodium Beta Carotene Vitamin B1 Vitamin B2 Calcium Iron

60 Kcal NMT 1 g Negligible NLT 13 g 0.5 mg 600 mg 50 mcg 50 mg 2.5 mg 0.5 mg

Mango Nectar is prepared from the best quality mangoes to ensure consistent quality round the year. It gives you all the energy to keep you going for hours together. It is popular among the children as it is extremely juicy and has a pleasant flavour. It is an excellent source of Vitamin C and is naturally high in Betacarotene. It is available in tetrapacks of two sizes 1 ltr and 200ml costing Rs 65 and Rs 15 respectively. The Ingredients of this juice include: Water, blend of Alphanso and other mango pulp, sugar, citric acid, and Vitamin C. The nutrition Facts per 100ml are as follows:

Nutritional Facts Per 100ml

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Real Pineapple Juice

It is available in Tetra Packs of two sizes 1 ltr and 200ml costing Rs 65 and Rs 15 respectively. The ingredients of this juice include: Pineapple juice concentrate, sugar, citric acid, water, and Vitamin C. The nutritional facts per 100ml are as follows:

Nutritional Facts Per 100ml

Energy Protein Fat Carbohydrates Sodium Vitamin B1 Vitamin B2 Calcium Iron 56 Kcal NMT 1 g Negligible NLT 13 g 2.5 mg 50 mg 50 mcg 8 mg 0.4 mg

Pineapple juice is prepared from the best quality pineapples to ensure consistent quality around the year. It is the perfect refreshing juice with great nutritive values. It not only gives the cool feeling but also beneficial in reducing fatigue. It is delicious and has unique digestive properties, which makes this juice a choice of all seasons. It is an excellent source of Vitamin C which boosts the immune system.

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Real Grape Juice

It has certain curative properties too and is a great blood builder. This juice is available in Tetra Packs of 1 Ltr and 200ml costing Rs 70 and Rs 15 respectively. The ingredients of this juice include: Water, Grape Juice Concentrate, Sugar, Malic Acid and Vitamin C. The nutritional facts of this juice are given as under:

Nutritional Facts Per 100ml

Real Grape Juice is made from the best quality and fresh and juicy grapes to ensure consistent quality round the year. Due to its highly nutritive value, it makes a perfect midmorning and late afternoon drink. Apart from being sweet and juicy, the Vitamin C and the minerals present in Grape juice helps in recovering from the general weakness. Energy Protein Fat Carbohydrates Sodium Potassium Vitamin C Calcium Iron NLT 56 Kcal NMT 1 g NMT 1 g NLT 13 g 3 mg 30 mg 20 mg 22 mg 2.3 mg

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Real Tomato Juice

The ingredients of this juice include: Tomato paste, Water, Sugar, Citric Acid, Salt and Vitamin C. The nutritional facts of this juice can be listed as under:

Nutritional Facts Per 100ml

Energy Protein Fat Carbohydrates Sodium Vitamin C Vitamin A Vitamin B1 Vitamin B2 Calcium Iron 36 Kcal NMT 1 g Negligible NLT 8 g 200 mg 12.4 mg 50 mcg 50 mcg 50 mg 8 mg 1 mg

One glass of tomato juice taken in the morning is an effective remedy for morning sickness. It is a great source of nutrition as it contain Vitamin A, C, B1 and B2, and essential minerals; that helps in increasing bodys resistance. Being one of the best sources of lycopene ; a glass full of tomato juice is considered to be a very healthy food. It is famous as an excellent blood purifier. This juice is available in tetra packs of 1 ltr costing Rs 70.

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Real Lichi Nectar

energy. This nectar encourages optimal absorption of iron and improves blood circulation. This nectar is available in tetra packs of two sizes 1 ltr and 200 ml costing Rs 70 and Rs 15 respectively. The ingredients of lichi nectar include: Water, Lichi Pulp, Sugar, Malic Acid, Vitamin C. The Nutritional Facts of this nectar are as follows: Lichi Nectar is a great alternative choice for breakfast as well as a refreshing drink for min morning and late afternoon breaks. A glass full of lichi nectar is a healthy drink as it contains one fifth of the daily recommended intake of daily vitamins. It is a great source of carbohydrates and Vitamin C which provides nutrition and

Nutritional Facts Per 100ml

Energy Protein Fat Carbohydrates Sodium Vitamin B1 Vitamin B2 Vitamin C Calcium Iron 60 Kcal NMT 1 g Negligible NLT 15 g 0.2 mg 0.008 mg 0.008 mg 30 mg 1 mg 0.1 mg Page 2 of 65

Real Cranberry Nectar

It is available in tetra packs of 1 ltr and 200ml costing Rs 70 and Rs 15 respectively. The ingredients of this nectar include: Water, Sugar, Cranberry Juice Concentrate, Deionised Apple and Black Currant juice concentrate, citric acid and Vitamin C. The nutrition facts of this nectar can be listed as follows: Nutrition Facts Per 100 ml Real Cranberry Nectar is prepared from the best quality cranberries to ensure consistent quality around the year. They are very rich in Vitamin C and Pectin. This nectar is recommended for helping to combat or prevent urinary tract infections. Energy Protein Fat Carbohydrates Sodium Potassium Calcium Iron 63.2 Kcal NMR 0.03 g Negligible NLT 16 g 39 mg 10 mg 17 mg 1.4 mg

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Real Mixed Fruit Juice

It is available in two sizes of 1 ltr and 200ml costing Rs 65 and Rs 15 respectively. The ingredients of this juice are: concentrate of apple, orange, guava, pineapple, passion fruit apricot, mango, banana, lime juice, water, sugar, citric acid and vitamin C. The nutrition facts of this juice are enumerated as follows:

Nutritional Facts Per 100 ml

Energy Protein Fat Carbohydrates Sodium Vitamin C Vitamin A Vitamin B1 Vitamin B2 Calcium Iron 56Kcal NMT 1 g Negligible NLT 13 g 4 mg 12.5 mg 800 mcg 50 mcg 50 mcg 4 mg 0.5 mg

Mixed Fruit Juice is a real palate pleaser as it is a mix of nine fabulous fruits. The nine fruits which make this juice are apple, orange, guava, pineapple, passion fruit apricot, mango, banana and lime juice. Mixed fruit juice is usually taken as a refreshing drink as it has most of the vital Vitamins such as Vitamin A, B1, B2 and minerals such as calcium, sodium and potassium that are necessary for good health. It is an excellent source of Vitamin C to boost up your immunity levels.

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Real Guava Nectar

Fat Carbohydrates Sodium Potassium Vitamin C Beta Carotene Calcium Iron Negligible NLT 15 g 20 mg 30 mg 20 mg 110 mg 7.5 mg 1.5 mg

This delightful nectar makes a great mid morning and late afternoon drink. It provides with a variety of nutrients that provides nutrition to bones and teeth. It acts as a good appetizer, and is rich in Vitamin A and C, calcium and other minerals. It is available in tetra packs of 1 ltr and 200ml costing Rs 70 and Rs 15 respectively. The ingredients of this juice consists of : Pink Guava Pulp, Water, Sugar, Citric Acid, Salt and Vitamin C. The nutrition facts of this juice are as follows: Nutrition Facts Per 100 ml Energy Protein 60 Kcal NMT 1g Page 2 of 65

Chapter 2 2.1 Literature Review

The fruit juice industry which was at its nascent stage till a few years ago at 35-40% per annum is bound to grow at a break neck speed as per study(India: Fruit juices now a social drink: Study,Businessline, nov 2002 and Fruit juices now a social drink, November ,2002, HBL), the study claims that the fruit juices are no longer a drink for health conscious but it is increasingly becoming a social drink. If the findings of a `usage and attitude' study conducted by market research agency Indica Research across 1,200 adults in SEC-A and SEC-B households in Delhi and Mumbai are anything to go by, then it's not just champagne and colas that qualify as social beverages. Packaged fruit juices are as much recognised as social drinks now, with dominant consumption being observed in the company of family and friends. Fruit juices are perceived as anytime beverages, with consumption being spread more or less evenly between the mid-mornings, afternoons and evenings. And GeneratioNow is as much inclined to sipping fruit juices as colas, with teenagers driving the maximum trials. Moreover Indians are shunning the fizzy drinks(Indians shun fizzy drinks, turn to juices;Ratna bhushan, knight ridder tribune business news) Juices and other nonPage 2 of 65

aerated drinks are growing at a blistering 35-40 percent compared to fizzy drinks which are notching up a 10 percent growth. Although the base numbers of aerated drinks are higher, the soft drinks industry sees the perceptible shift towards 'healthy' drinks in consumer taste. If a recent study is to be believed the Indian branded food and beverages market grew by over 5 percent, outpacing the global average of 4 percent. According to a recent ACNielsen Global Services report on global trends in food an beverage, the growth rate for individual product categories within the Indian market too reflect aggressive performances within the similar period.(India takes a big bite of branded food; Knight ridder tribune business news feb,2005). The beverage industry is currently undergoing a number of significant changes. There are several drivers of the demand changes that are common to all three categories. The first is our population's demographics - the number of aging baby boomers in the market is growing. Primarily these consumers are seeking healthier products and are demanding products that can serve as medicine and still taste good. As well, today's young consumer is seeking healthier choices. A recent Beverage World magazine article on the future of drink explains, "Kids today, you know, are growing up with bottled water, not cola, as an automatic choice" (Prince, 2002). Also, the number of different types of occasions where beverages are consumed is increasing. There are now beverages targeted for specific events: sporting, dining experiences, mood enhancement, and a variety of other situations. This has created the need for processors to identify what specific market and occasion they are targeting. The Juice industry is a part of the beverage market, the classification of the beverage market can be done as follows:

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Beverages

Alcoholic Beverages

Non-Alcoholic Beverages

Brewers

Distillers

Winemakers

Carbonated Beverages

Non Carbonated Beverages

Colas

Coffee and Tea

Energy, Sports, Health And Nutritional Drinks

Juices

Water and Ice

Table 2.1

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2.2

Relevance Of Study

In the recent past many new fruit juices have been launched in the market due to which the scenario of the Juice Industry has changed considerably. Any organization needs to access its market scenario to gauge its current potential and to get a feedback about its current practices and the results which these practices are bearing. Also the need of consumer insight is required so that the company can make considerable efforts to fulfill the needs of the consumer.

2.3

Need Of The Study

Any industry needs to understand its strengths and weakness and the points where it can improve, the idea of the market share lets the company to understand where it stands, whether its policies and efforts in the area has beared fruits or not. Juice Industry is a highly competitive industry. The customer is always the king here, as the product he uses as generally as a health supplement or to quench his thirst or for taste, in all these cases if the product varies even an iota from his expectations the customer shifts to other brand forever. A company can produce a quality product. But if the voice of customer is not included in the product development, then it wont be accepted by the customer. Hence, the study was undertaken to understand the market share and the consumer preferences compared to the competition in the Ghaziabad region. The study was also undertaken to understand and map the customers requirements to understand the consumer to understand what can be done to improve the viability of the product

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Chapter 3 3.1 Scope Of Study

The study will be conducted on retailers of whole Ghaziabad market and consumers of the same area. The retailers and consumers will be interviewed through a structured questionnaire. Areas Covered: Raj Nagar, Lohia Nagar, Patel Nagar, Kavi Nagar, Rakesh Marg, Nai Basti, Ramte Ram Road, Vijay Nagar, Govindpuram, Shastri Nagar, Chiranjeev Vihar, Railway Road, Ghanta Ghar, Gandhi Nagar, Nehru Nagar, Maliwada, Sihani Gate. Time: The primary data collection would be done during the period of 4th April,2006 to 3rd June 2006.

3.2

Research Design

The research design is conclusive and descriptive in nature, as the study as this research would help the decision maker in determining, evaluating and selecting the best course of action in the given market condition; as the research explores the market conditions and suggests the alternatives which can be taken.

3.3

Sources Of Data

Data was collected from both the primary as well as the secondary sources. Firstly, secondary literature was analysed and reviewed to understand the current trends in the industry and the market, various juice brands available to the consumer, the areas where customers are paying most emphasis for their purchase decision etc. This was followed by a primary survey of the retailers to find the current scenario in the juice market and access the performance of Real Juices.

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At the later stage, a survey of consumers was conducted to understand the consumer behaviour about the product.

3.4

Target Population

The target population for mapping the market share of different juices available in the market would be the retailers selling any brand of packed juice at his/her counter. For the consumer behaviour survey, the target population would be the consumers who drink any brand of packed juices.

3.5

Sampling
3.5.1 Sampling Design
The sample chosen from the target population of the dealers was based on the identification of the developed as well as the underdeveloped markets of Ghaziabad and proper representation from each kind of market was taken. The consumers were sampled on the basis of convenience sampling.

3.5.2 Sample Size

The sample size for the retailer was 103. The sample size for the consumers was 189.

3.6

Procedure for Data Collection

For the purpose of data collection both primary as secondary data would be used. For the purpose of primary data collection of dealer research, dealers were administered with a questionnaire which had both structured as well as unstructured questions. Customers were also administered a questionnaire which had both structured as well as unstructured questions.

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Chapter 4 Launch Of Coolers

The company launched its summer brand Coolers in the month of April 2006. The drink is launched as a summer drink with the USP to beat the scorching heat. The drink was launched in four different flavours: 1. Coolers Watermelon-Mint 2. Coolers Aampanna 3. Coolers Lemon-Barley 4. Coolers Rose Lichi These drinks were launched in the Ghaziabad market from 17th to 22nd April,2006. The purpose of launching was this drink was to position the drinks on the shelves before the advertising campaign is launched on the national level and the promotional campaign is launched at the local level. The following Launch Trade Scheme was provided to the retailers at the time of launch of the product:

Size
1 litre 200 ml

Purchase
12 Pieces 5 Trays 2 Trays 1 Tray Table 4.1

Free Issues
1 Piece 1 Tray 8 Pieces 3 Pieces

Here one tray of 200ml drink consists of 30 individual pieces.

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The company also provided us with the Suggested Orders/ Placement Norm, according to which the drink needed to be placed on the retail outlets. All the retail outlets were divided in three categories based on the amount of sales they give in one month. The category and the sales can be shown in the following table:

Category Monthly Sales(In Rupees)

A B C > Rs 10,000 Rs 5,000 to Rs 9,999 < Rs 5,000 Table 4.2

According to the above given format the Placement Norm provide by the company was:

A 1 Litre 200 ml
12 Pieces 60 Pieces

B
6 Pieces 30 Pieces

C
3 Pieces 15 Pieces

Table 4.3 The modus operandi used for the launch of Coolers included the team identifying a particular area where the launch was to be done on a particular day. Then the team used to visit the retailers of that particular area and convince them to place the drinks on their shelves. The convincing strategy generally included the following points: Sampling of the drink: The team carried the sample of the drinks with it in a small tempo with the facility to keep the drink chilled. By convincing the retailer about the goodness of the drink and educating him about the contents and their effect on the scorching heat. By educating the retailer about the forthcoming advertising campaign. By educating the retailer about the various trade schemes he would get with the drinks. By providing the retailer with all the promotion material of the drink ( such as posters, POPs etc) and placing it themselves at the appropriate place in the shop. Page 2 of 65

 By educating the retailer that this drink is from the stable of the best selling juice Real Juice in the market. The team covered the whole of the Ghaziabad market in the span of one week given for the promotion of the drink. The beats were scheduled as follows:

Day Area Raj Nagar Monday Off Tuesday Lohia Nagar, Patel Nagar, Kavi Nagar Wednesday Rakesh Marg, Nai Basti, Ramte Ram Road Thursday Vijay Nagar, Govindpuram Friday Saturday Shastri Nagar, Chiranjeev Vihar, Railway Road, Ghata Ghar Gandhi Nagar, Nehru Nagar, Maliwada, Sihani Gate Sunday
Table 4.4

Learnings From The Launch Of Coolers

The following learnings were made from the launch of Coolers, the summer drink in the Ghaziabad market: The experience of sales was received. The art of negotiations was learned. The experience of product launch was received. The knowledge of how trade promotion should be done was gained.

Chapter 5 Promotional Schemes

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For any product to make its presence felt in the market certain consumer level as well as the retailer level promotion schemes are necessary, which provides the encouragement to the retailer to sell the product more briskly and keep a good stock of the product. Also the consumer schemes provides the encouragement to the consumers to prefer the product with the scheme as compared to the similar products. Here I list the promotion schemes, both consumer level and the retailer level, used by different companies which are providing competition to the Real Juices in the Ghaziabad market.

Real Juices
Trade Schemes A margin of 15% is provided to the retailers on the maximum retail price of the product. In case of tomato juice the margin is that of 12%. Trade scheme of 15+1 and 24+2 available on the one litre packs of orange, mango and mix fruit juice. In case of 200ml the scheme of 30+4 was available on Guava, Grapes, Lichi and Pineapple. Rs 5 off on three packs of 200ml Real juice. Offer comes as school pack. Consumer Scheme The consumer scheme of a glass free with the one litre pack of mango and orange was launched. But with the launch of this scheme the trade scheme was taken back.

Fresh Gold
The schemes provided by the fresh gold dealers varied at certain points in the market.

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 The trade scheme of 12+1 was available with the retailers at the time of survey, before this scheme the company was giving 2+1 as the scheme to the traders. At some places like Kirana Mandi the juices were available at 3 for Rs 100. Treat was available at 5+1. Company is buying shelf space at various outlets at Rs 300 or Rs 500, especially at the stores where the Real Juices sell briskly. Display stands to the retailers to display the small packs of priyagold juices. Posters, POPs etc seen regularly at various outlets.

Leh Berry
Trade Scheme
Trade scheme of 12+1 was available at various stores, but at some places the scheme was also 2+1. Posters, POPs etc seen regularly at various outlets.

Consumer Scheme
Leh Berry juices were available with the offer of 2+1 to the consumers.

Chapter 6
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Market Share Research Questionnaire Analysis and Presentation Of Data

For the market share research, four markets were chosen viz. Raj Nagar, Kavi Nagar, Lohia Nagar, Patel Nagar, Govindpuram. The choice of the markets were such so as to cover the areas where the juice sales is high as well as areas where the juice sales are low. In these markets, Raj Nagar market and Kavi Nagar market are the markets where the juice sales are high owing to the development of the area and the demography of the consumers. In case of Lohia Nagar, Patel Nagar and Govindpuram the juice sales are low due to similar reasons. The number of shops covered in each area were, Raj Nagar: 35, Kavi Nagar: 31, Lohia Nagar: 10, Patel Nagar: 12, Govindpuram: 15). Total number of shops where the survey was conducted came out effectively to 103.
40 35 30 25 20 15 10 5 0 Areas 10 12 15 Raj Nagar Kavi Nagar Lohia Nagar Patel Nagar Govindpuram No. Of Shops

35 31

Fig 6.1
The company has divided the retail shops into three categories A,B and C. The breakup of the shops surveyed, based on these categories can be classified as: Page 2 of 65

A Raj Nagar Kavi Nagar Lohia Nagar Patel Nagar Govindpuram Total
8 7 0 1 3

B
17 15 4 4 7

C
10 9 6 7 5

19
Table 6.1

47

37

Raj Nagar

10

8
A B C

17

Fig 6.2

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Kavi Nagar

7 A B C 15

Fig 6.3

Lohia Nagar
0 4 A B C

Fig 6.4

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Patel Nagar

1 A B C

Fig 6.5
Govindpuram

3 A B C 7

Fig 6.6

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Total Shops Covered

19 37 A B C 47

Fig 6.7

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The presence of various Fruit Juice brands at various outlets surveyed was as follows:

Brands Present At Various Outlets Covered

100 80 No. Of Outlets 60 40 20 0 3 Brands 91 65 23 97 Real Tropicana Fresh Gold Leh Berry Frooti

Fig 6.8

Findings: Frooti brand was available at maximum number of shops, followed by Real
and Fresh Gold. Different Retailers when asked about the reasons for keeping and not keeping Real Juices at their counter, the answers can be grouped in following major categories:

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Reasons For Keeping Real Juices

4% 23% 49% Customer's Demand Brand Name Relations With Stockist Market Leader 16% Trade Schemes

8%

Fig 6.9

Findings: The customers demand came out to be the major reason for keeping the
real juice at any particular counter.

Reasons For Not Keeping Real Juice

Replacement Policy 12% 9% 35% Relations With Stockist/Salesman Trade Schemes Do Not Keep Juices At All Routing Problem

29%

15%

Fig 6.10

Findings: The reason for some of the shops not keeping the juice brand Real at their
counter, came out be the replacement problem of the product, followed by the trade schemes. Page 2 of 65

The survey also explored the problems faced by the retailers due to Real Juices :

Problems Faced By Retailers

3% 11% 23%

Puffing Replacement Irregularity In Delivery Behaviour Of Salesman

63%

Fig 6.11

Findings: The major problem faced by the retailers from the Real Juices is the
Replacement Problem of the firm, followed by the puffing of the packs. The survey indicated the variant wise sales of Real Juices in the markets covered as follows:

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Varient Wise Sales Of Real Jucies

25 20 Percentaeg 15 e 10 5 0 4 22 25 20 13 8 1 5 Mixed Fruit Mango Orange Guava Lichi Cranberry Pineapple Grapes Tomato

Varients

Fig 6.12

Findings: The variant wise sales data represents that the Orange is the most popular
juice in the Reals stable followed by Mixed Fruit and Mango.

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According to the survey the market share analysis was done in the markets covered. Though the actual figures were not revealed by the retailers but the approximate value of the sales was given, the data compiled on that basis indicated the following results:

Brand Name
Real Fresh Gold Leh Berry Others

Market Share

72.76 % 10.19 % 4.87 % 12.05 % Table 6.1

Market Share

5% 10%

12%
Real Fresh Gold Leh Berry Others

73%

Fig 6.13

Chapter 7

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Customer Preferences Survey Questionnaire Analysis

A survey was conducted to get the insight about the preferences of the consumer regarding the juices. The survey was conducted over 189 consumers. The following graphs represent the results analysed thereof. Out of the 189 people surveyed 124 people preferred to drink packed juices whereas 65 didnt preferred packed juices.

65 Packed Juices No Juice s/Packed Juices 124

Fig 7.1 To understand the behaviour of the consumer, the demographic variables need to be explored, the following data gives an insight into the demographic variables of the consumer. The survey conducted was done on 67 males and 122 females, the data can be represented by following graph:

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Sex Ratio

67
Males Fem ales

122

Fig 7.2 The age group of people surveyed was

Age Groups
70 60 50 No. Of 40 Respondents 30 20 10 0 64 54 38 33 15-20 20-35 35-50 50 and above

Age

Fig 7.3

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Annual salary of the people who prefer to drink packed juices are:

Annual Salary (in Lacs)

10% <1.5 1.5-3.0 56% 34% >3.0

Fig 7.4 The buying behaviour of the consumers based on impulse buying behaviour and planned buying behaviour for packed juices was recorded as: Planned-46 Impulse-78
Buying Behaviour

37%

Planned Impulse
63%

Fig 7.5

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On surveying the individuals about the occasions when the juices are consumed, the following results were observed:

Occasions When The Juice Is Preferred

50 40 30 No. Of Respondents 20 10 0 Occassions 31 16 45 32 Generally Dining Outside Regularly Parties etc

Fig 7.6 The reasons for drinking the juices were as follows:

Reasons For Drinking Juices

Healthy/Nutritious 100 80 60 No. Of Respondents 40 20 0 Reasons 58 30 39 16 34 9 18 92 73 Energetic Supplement To Soft Drinks Non Carbonated Beat The Heat Preservative Free Good For Skin Taste Convenience

Fig 7.7

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On investigating which brand of juice do consumers prefer to buy, the following results were obtained:

Prefered Brand

20 6 Real Fresh Gold Leh Berry Others

14 84

Fig 7.8

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The brand preference study was augmented by the study to understand why a particular group of people preferred a particular brand. In case of Real Juices the following observations were made :

Reasons For Preferring Real

24 52 Brand Name Thickness Taste Habit 12

61

Fig 7.9

Reasons For Preferring Fresh Gold

3 9 Consumer Schemes Habit Taste Advertisments 4

12

Fig 7.10 Page 2 of 65

Reasons For Preferring Leh Berry

Nutrition(Seabuckt horn) Consumer Scheme Taste

5 2

Fig 7.11 During the research it was found that a number of consumers had drifted from Real to other brands and vice-versa. The reasons for drift of consumers from Real to other brands, when enquired, were found to be following :

Reasons For Not Continuing With Real

14

12

Consumer Schemes Taste Cheap

Fig 7.12

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In the survey, 65 people said that they dont prefer to drink packed juices, the reasons for the same, when enquired, were revealed to be the following: =

Reasons For Not Drinking Packed Juices

4 14

19

Doubt About Freshness Added Sugar Added Preservatives(Notion) Costly

10

18

Never Tried

Fig 7.13

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Chapter 8 8.1 Observations

Real Juice are the market leader in the Ghaziabad market with the market share of approximately 73% followed by Freshgold and Leh Berry respectively. The market share of the Real Juice is under threat from other players owing to their aggressive marketing and promotional schemes. The main reasons for not keeping the Real Juices by some of the retailers were: Replacement Policy of the company Routing Problem

The main problems faced by the retailers which can be improved upon were Replacement Irregularity in delivery of products.

Orange, Mixed Fruit and Mango; in the given order are the largest selling variants of Real Juices Reasons for not continuing with Real Juices in case of drifting away of consumers were mainly: Consumer Schemes Cost

The display of product was not proper at most (approximately 82%) of the shops. Page 2 of 65

 The promotional banners, danglers, POPs, posters etc ( of Real Juices) were not present in the market, other players had these things in significant number. The storage of 200ml packs of Real Juices was not properly done in the Chillers at most of the places. At some places the offers of Fresh Gold were different from whole of the market, like, they were available for 3 ltrs for Rs 100.

8.2

Recommendations

Any study which is conducted without any scope for further improvement in the situation is considered to be futile effort. This study showed a few loopholes which needs to be filled for better performance of the product in the market. The recommendations on the basis of the study can be enumerated as follows: Replacement Policy of the company needs to be revised, like the 1% replacement of the product can be distributed evenly among all the retail shops, where the replacement needs to be done. Routing problem can be solved by judiciously selecting the areas which are near to each other ,so that the time and energy of the salesman is saved and he is able to give more attention to the shops where he is going. A promotion kit should be provided to the retail shops so that the visibility of the product increases. Proper stands should be provided to the retailers where they can display the product. HLL has made some of its stores as Super Value Stores, they get special treatment from HLL, Dabur can make some of its A category stores as special stores, giving them better services in terms of replacement and margins. Festival packs can be introduced in the 200ml packs giving a variety of variants at a cheaper price. This would help pick up the sales for the 200ml packs without providing schemes like one pack free on another.

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 There is lack of motivation at ground level, some training programs and motivational exercises needs to be done. For e.g target based incentives, T-shirts, caps etc (or uniform) of the company which can create a sense of belongingness to the company. Promotional schemes such as stalls around schools, higher educational institutes, gymnasiums etc, where the consumption of juices can be high should be done. The cricket stadiums( two in number) host regular matches, stalls can be put up there. Beats of the salesman should be planned in such a way that it falls just a day before the beat of the nearest competitor, thus, through little persuasion, we can capture the order intended for the other juice brand.

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8.3
Paucity of time.

Limitations

Inability or unwillingness on the part of some respondents to answer all the The market share research was based on approximate values, thus exact market

questions asked. share could not be determined.

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References Websites
www.dabur.com www.proquest.com

Books
Marketing Research, by Naresh Malhotra, fourth edition Adverting Market Internal Marketing Service Marketing Principal Marketing Sales Marketing

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