PROJECT ON

A STUDY ON MARKETING STRATEGIES OF FROOTI

SUBMITTED BY

KUNAL VIRADIA

Seat No. 3718

T.Y.BMS (Semester-V)

*2012-2013*

UNDER THE GUIDANCE OF

PROF. MIKITA SHAH

SUBMITTED TO

UNIVERSITY OF MUMBAI

NIRMALA MEMORIAL FOUNDATION COLLEGE OF

COMMERCE AND SCIENCE

90 FEET ROAD, ASHA NAGAR, THAKUR COMPLEX,

KANDIVALI (E), MUMBAI-400 101.

1
 Mango Frooti, Fresh and Juicy

2
 DECLARATION

I MR, KUNAL VIRADIA of T.Y.BMS. (Bachelor Degree of Management Studies

Semester V) hereby declare that I have completed the project on A STUDY ON

MARKETING STARTEGIES OF FROOTI in the academic year 2012-2013.

The information submitted is true and original to best of my knowledge.

_______________ ________________

Date of Submission. Signature of Student,

(Kunal Viradia)

3
 CERTIFICATE

This is to certify that the project titled as A STUDY ON MARKETING

STARTEGIES OF FROOTI has been completed by Mr. Kunal Viradia of

T.Y.BMS. (Semester-V) examination in academic year 2012-2013.

The information submitted is true and original to the best of knowledge.

______________ ______________

(Dr. T. P. Madhu Nair) (Prof. Poonam Kakkad)

Principal Course Coordinator

________________ ________________

(Prof. Mikita Shah) External Examiner

Project Guide

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 ACKNOWLEDGEMENT

I would like to extend my gratitude to Prof. Mikita Shah for providing guidance

and support during the course of project. She has been a great help through the

making of the project. I would like to thank the University Of Mumbai for giving

me the opportunity to work on such a relevant topic.

I would also like to thank the college faculty and the librarian and the Principal

Dr.T.P.Madhu Nair for their help and other who are indirectly responsible for the

completion of this project. In addition I would like to take this opportunity to thank

our BMS Coordinator Prof. Poonam Kakkad for being there always to guide me

and for extending her full support.

Date- Signature of

Mumbai Student

(Kunal Viradia)

5
 PREFACE

Mango Frooti is Swastik franchise of Parle Argos flagship brand and Indias
leading fruit drink with an 85% market share. Mango - Indias national and most
premium fruit was a virtually untapped segment until the year 1985, which saw the
launch of Frooti Mango in a trendy convenient tetra-pack.
The researcher here gives a brief about Frootis business, find out the reason of the
consumers taste and preference for the non carbonated soft drink and its market
share.
A fair and unbiased research study is also made by the researcher with the help of
questionnaire method, where findings have been made that even when Frooti is
popular as childrens drink it is preferred by adults as well.

The company needs to carryout research programs frequently in order to meet the ever
changing demand.
Frooti can go for some most popular faces of the film industry as
brand ambassador as Indian consumers are mostly influenced by them
Along with it, Frooti should also go for a famous cartoon character
like Scooby Doo or Pokmon to target the kids.
Swastik Group of companies should also concentrate on more
innovative marketing strategies in order to survive in this competitive
era.
The frequency of advertising on broadcast media should be increased
in order to increase the reach and get the desired domino effect.
Swastik group can even increase its sales by adding one more attribute
as flavor of mango such as kaccha aam.
6
 Table Of Contents:-

SR. Particulars Page

no.
No

Chapter 1
1.1 Introduction 9
1.2 Scope of Project 9
1.3 Objectives of The Project 10
1.4 Hypothesis 10
1.5 Research Methodology 12
1.6 Limitations 14
Chapter 2
2.1 Non-Carbonate Soft Drink Industry In India 15
2.2 Company Profile 18
2.3 What is Marketing ? 24
2.4 What is Marketing Strategy ? 25
2.5 Marketing Strategy Undertaken By The Company. 26
2.6 Marketing Mix Undertaken By The Company. 28
Chapter 3
3.1 Marketing Survey & Data Analysis 36
3.2 SWOT Analysis 54
Chapter 4

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4.1 Suggestion 57
4.2 Recommendations 60
4.2 Conclusion 61
4.3 Bibliography 65
4.4 Annexure

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 INTRODUCTION

A soft drink is a beverage, often carbonated, that does not contain alcohol.
(Carbonated soft drinks are more commonly known as soda, pop, tonic, or soda
pop in parts of the United States and Canada, or fizzy drinks in the U.K.;
sometimes called minerals in Ireland) The name "soft drink" specifies a lack of
alcohol by way of contrast to the term "hard drink". The term "drink", while
nominally neutral, often carries connotations of alcoholic content. Beverages like
colas, sparkling water, iced tea, lemonade, squash, and fruit punch are among the
most common types of soft drinks, while hot chocolate, hot tea, coffee, milk, tap
water, alcohol, and milkshakes do not fall into this classification. Many carbonated
soft drinks are optionally available in versions sweetened with sugars or with non-
caloric sweeteners

SCOPE OF PROJECT

Detailed study of the noncarbonated soft drinks industry in India

Analysis of Frootis performance against the other prevailing noncarbonated
soft drinks brands in the country.
Analyzing consumer perception based on various parameters such as purchase
frequency, effect of sales promotion schemes, brand attributes and consumer
loyalty, packaging ,

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 OBJECTIVES OF THE PROJECT

To study the taste and preferences of the consumer

To study the marketing strategy of frooti in Mumbai.
To study the marketing mix of Frooti
To study the market share of Frooti in the non-Carbonated Soft
Drink (NCSD) category

HYPOTHESIS

1.
A. Null Hypothesis
H0=Fruit Drink is the preferred attribute which customers look for in Frooti

B. Alternate Hypothesis
H1 = Fruit Drink is not the preferred factor for which customers looks in Frooti

2.
A. Null Hypothesis
H0 = frooti is a child drink

B. Alternate Hypothesis
H1= frooti is not a child drink

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3.
A. Null Hypothesis
Ho = Frooti is readily available

B. Alternate Hypothesis
H1= Frooti is not readily available

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 RESEARCH METHODOLOGY

QUESTIONNAIRE DESIGN

Closed and open ended questionnaire designs are used in this project.
STATISTICAL METHODS:
In this study Graphical Methods under bar graph charts are used for analysis.

METHODOLOGY:

A) DATA COLLECTION
1) Primary Source
Retailers
Consumers
2) Secondary Source
Website
Magazines and Newspapers

B) RESEARCH INSTRUMENTS
Questionnaire
Personal interview

C) SAMPLING PLAN
Sampling Unit: Who is to be surveyed?
Urban Consumers.
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 Sample Size: How many people to be surveyed?
100 Units (of all age groups)

Sampling Procedure:
We have taken sample from following areas:
Mahim main Road
Kandivli
Borivli
Dadar
Mahavir nagar
Roshan Nagar

Research Design

Descriptive research
Descriptive research studies are those studies which are concerned with
describing the characteristic of a particular individual, or of a group. The aim is to
obtain complete and accurate information in the said studies; the procedure to be used
must be carefully planned.

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LIMITATIONS:

Few people were not responding as we expect from them as they

were reacting for the survey is conducted for false purpose.

Some of the responses might be biased.

Most of the survey was carried in and around Mumbai city.

It is wholly based on primary data.

As the time was less for conducting the survey, so the survey could
not be conducted in a large area.

As the sampling size was very small, survey could not be conducted
on larger basis.

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NON-CARBONATED SOFT DRINK INDUSTRY
IN INDIA

AN OVERVIEW:

The non-carbonated SOFT DRINK (NCSD) sector can be classified as Fruit

drinks, Nectar and Juices. The classification is based on the percentage 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%. The total
size of the branded non-carbonated beverages in the organized segment is
estimated at Rs.500 crores. The Fruit drink segment is estimated at Rs.250-300
crores, while the Juice market (Branded & Packaged) is estimated at Rs 150 crores.
Nectar is a small category of around Rs 35-50 crores. In the fruit drink category,
Parles Frooti, Godrejs Jumpin and Coca-Colas Maaza and Pepsis Slice are the
major brands. In the Nectar segment, the key national players are - Dabur, Godrej
Xs and Parles Appy fizz . The two key national level players in the juice segment
are Tropicana and Real. Real is the market leader with 55-60% market share.
Tropicana has an estimated share of 30-35%. Several local / regional brands also
exist, besides a huge unorganized sector. The Juice category is the fastest growing
segment at present, estimated to be growing by 20-25% p.a. The fruit drinks
category has also been witnessing growth of around 5% p.a.The main reason for
this growth in the NCSD Category is the change of the consumer preference from
the carbonated to the non-carbonated soft drink sector mainly due to increasing
Health Awareness among consumers and the Pesticide issue relating to Coke and

15
Pepsi. In the Fruit Drink segment, Frooti is the clear market leader with around
85% market share but in the NCSD category as a whole, its share has been
declining because of the growth in Fruit Juice segment.So, with the growth of the
NCSD category, Frooti has to compete with all the segments in this category to
take a larger share of this growth.

These are the category of the non carbonate soft drink :

Non-Carbonated
Soft Drink

Fruit Juice Fruit Drink Fruit Nectar

Category Category Category

Major Players Major Players Major Players

Real Frooti Appy fizz
Tropicana Jumpin
Slice
Maaza
Mango sip

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COMPETITORS:

These are the main competitor of the frooti : -

1. Maaza
2. Slice
3. Real
4. Mango sip
5. Real
6. Tropicana

We are not taking into account the nectar segment as it constitutes a

small part of the NCSD category and also, the growth is very sluggish
in this segment. Mango sip mazza and slice is main competitor

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 COMPANY PROFILE

PRODUCT

The Group is engaged in the manufacturing Mango Drink, Appy Fizz (Carbonated)
& Bailey Packaged Drinking Water as a Franchisee of World Renowned Parle
Agro Private Limited. Two state of the Art Units have been commissioned at
Tatisilwai Industrial Area, Phase-II, Ranchi for catering the requirement of Bihar
and Mumbai in particular with a net-work of over 250 Distributors and 25000
marketing points.

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 PRODUCTS

FROOTI:
It is the flagship brand of swastik fruits product Pvt Ltd (franchise of Parle agro).
It was introduced in 1985 and it was the first Fruit Drink to be introduced in India.

BAILLEY AQUA:
It is a mineral water and was launched in the year 1993. It is one of the first brands
to get an ISI certification Bailley conforms to stringent BIS Norms. It undergoes
51 quality control tests includes 32 chemical tests, 9 microbiological tests and 10
physical tests and meets international standards laid down by WHO, USFDA,
PFA.
Parle Bailley Aqua is unique because it has the same consistent taste across India.
This is because of the unique purifying processing system, which removes all
minerals and salts and puts back only exact premeasured quantities of salts and
minerals necessary for the human body. Bailley Aqua is purified with chemical
free natural U.V. Treatment.

APPY FIZZ :
An apple drink from swastik franchise of Parle , its available in a sleek,
international pack. The brand has been positioned as the champagne of apple
drinks due to its unique richness of taste. Unlike ordinary apple drinks, Apply
spells style and exclusiveness which makes it a party favorite in the upper crust of
the society. Apply is made from freshly picked ripe apples sourced from the rich

19
natural environs of Himachal Pradesh. The clear and crisp Apply Nectar is a
premium product available in a 200 ml easy to pour pull-tab opening pack.

ABOUT FROOTI:

Mango - Indias national and most premium fruit was a virtually untapped segment
until the year 1985, which saw the launch of Frooti Mango in a trendy convenient
tetra-pack. Frooti Mango is swastik franchise of Parle Argos flagship brand and
Indias leading fruit drink with an 85% market share. Now, Frooti also comes in
PET bottle packing. Frooti is like an Indian ambassador and is a hot favorite not
only in India but all across the world. Frooti is the first tetra pack fruit juice in
India. Launched in 1984, Frooti still holds a dominant position in the Rs300 crore
tetra pack fruit juice (TFJ) market. Frooti over these years have carved out a niche
for itself in the market. Frooti instantly caught the fancy of Indian consumer with
its tetra pack 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 tetra pack had other benefits also . Fruit juice is a perishable product and tetra
pack have extended the shelf life of Frooti because tetra packs have 2 layers of
paper and a plastic coating that ensured tamper proof and enhanced shelf life.
Lured by the success of Frooti, there were a lot of new launches in the TFJ market.
Players like Godrej with Jumpin, kissan etc tried their luck in this market but failed
to dislodge Frooti. Frooti was positioned as a mango drink that is Fresh-n-juicy
For over 7 years, the company promoted the product using that famous baseline.
The product have tried to create excitement in the market through a series of new
variants and packing. But in late nine tees the brand was facing stagnated sales.

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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 between16-21. The positioning changed to be more fun based. The
package also changed. The old green color of the bottle changed to more bright
mango color with lot of graphics added to it. One of the most famous marketing
campaigns India have witnessed took place during the repositioning. The campaign
is the famous Digen Verma campaign. This campaign was considered as one of
the most successful teaser campaigns in India. The campaign lasted for 15 days
started in February 2001. The campaign was about a faceless person Digen Verma.
There were posters and outdoors all across the markets that had messages like
Who is Digen verma Digen Verma was here etc. This created lot of excitement
in the market and Digen Verma became the most talked about faceless name at
that time. The campaign was executed by Everest communication. But the
campaign was not followed up and the hype was not translated to long term brand
building. Frooti is basically a nectar based drink so it is not 100% fruit juice, it also
have 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 Enjoy brand but it did not clicked. 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 ,
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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.

WHY FROOTI:

Soft drink market can be divided into two categories:-

Carbonated soft drink
Non-carbonated soft drink (NCSD).

Frooti is the market leader in the NCSD category with around 60% market share.
The NCSD market is growing but there is intense competition among the various
segments in this market. The market share of Frooti in the NCSD category is on
the decline because of the Fruit Juice Segment, which is increasing at the rate of
20% per annum along with the sluggish growth of the Fruit drink segment. To
counter this onslaught, Frooti has introduced PET bottle packing in 200 ml, 500 ml
and 1000 ml and Tetra-pack packing in 65 ml quantity. Therefore, we have taken
up this project to suggest recommendations to swastik to increase the share of
Frooti in NCSD category and to study the market response of the new packaging of
Frooti.

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 What is Marketing ?

Marketing is the process by which companies create customer interest in products

or services. It generates the strategy that underlies sales techniques, business
communication, and business development. It is an integrated process through
which companies build strong customer relationships and create value for their
customers and for themselves.

Marketing is used to identify the customer, to keep the customer, and to satisfy the
customer. With the customer as the focus of its activities, it can be concluded that
marketing management is one of the major components of business management.
Marketing evolved to meet the stasis in developing new markets caused by mature
markets and overcapacities in the last 2-3 centuries. The adoption of marketing
strategies requires businesses to shift their focus from production to the perceived
needs and wants of their customers as the means of staying profitable.

23
 What is Marketing Strategy ?

Marketing strategy is a method of focusing an organization's energies and

resources on a course of action which can lead to increased sales and dominance of
a targeted market niche. A marketing strategy combines product development,
promotion, distribution, pricing, relationship management and other elements;
identifies the firm's marketing goals, and explains how they will be achieved,
ideally within a stated timeframe. Marketing strategy determines the choice of
target market segments, positioning, marketing mix, and allocation of resources. It
is most effective when it is an integral component of overall firm strategy, defining
how the organization will successfully engage customers, prospects, and
competitors in the market arena. Corporate strategies, corporate missions, and
corporate goals. As the customer constitutes the source of a company's revenue,
marketing strategy is closely linked with sales.

Market Oriented strategy

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 Marketing Strategy of Frooti in Mumbai

1. SKU strategy

The company is looking at larger pack formats and will focus on a well planned
SKU (stock-keeping unit) strategy to addresses on-the-go as well as in-home
consumption for Frooti. Among recent introductions have been a one-litre,Pet and
1 pack to cater mainly to in-home consumers and families who prefer staggered
consumption. A 500 ml PET bottle priced Rs 25 is another new launch, targeted at
on-the-go consumers. Prices of the brand in various SKUs range from Rs 3 for a 65
ml pack to Rs 60 for the 1500 ml pack.

2. Frooti in tetra pack

Parle Agros Frooti is the leading brand in the tetrapak fruit drink market. The
brand witnessed declining sales and started losing its appeal due to increased
competition. To revive the sagging sales and appeal of the brand, Parle Agro
decided to re-launch the brand with new positioning and packaging. The case let
discusses about Parle Agros design and implementation of the brand prelaunch
exercise for Frooti. It provides a detailed description of the advertising strategy
followed by the company to promote the brand that involved a teaser advertising
campaign revolving around a faceless character 'Digen Verma'.

3. Frooti is 100 % juice

Parle Agro has entered the 100-per cent pure juice category with mango Juice. The
brand frooti was unveiled by Nadia Chauhan, director, Parle Agro, in Mumbai.

25
Targeted at the fast growing segment of consumers who are moving towards 100
percent juice, .Creative land Asia has designed the design and packaging of the
juice brand.

Frooti has deliberately kept the packaging like mango color, with a view towards
standing out on retail shelves. The launch campaign (frooti) of the product will
involve print advertising, point of purchase promotions and internet. ''Most juice
brands do not communicate clearly whether they are nectar, 85-per cent juice or
100-per cent pure juice, who oversees sales, marketing and product development at
Parle Agro. "Consumers are confused with what they are buying. Only 100 per
cent juice is pure juice .frooti Juice is 100 per cent juice."

Brands like Frooti and Appy fizz Classic that have established themselves as
market leaders in their respective categories, Parle Agro's decision to enter the 100-
per cent juice category is in line with the its strategy to have presence across all
beverage categories.

4. Direct selling to retailer

Frooti is very famous product in Mumbai among child, young. and women .
According to my survey I found that company is direct selling product to retailer .
tatisilwai is the manufacturing center of frooti. It is developing under swastik fruits
product.pvt ltd (swastik is the franchise of parle agros ) kokar is the main
distributing center of the company from where company is direct selling all
product to retailer .employee of the swastik is selling product in every area in the
Ranchi. Every sales man of the company go to retailer and they are selling product
with their own experience and company have many sales officer who is very

26
sincere and honest. All the employee of the company is giving hundred effort for
customer satisfaction.
Company have around two hundred employees for Mumbai area .there

Two main distributing center of company in Mumbai one is in Ranchi and another
one is in Jamshedpur (Tata). And one dippo in Patna (Bihar)

Product has huge demand in Bihar and Mumbai. Supply chain management is
excellent in Bihar` and Mumbai

Company has many distributer and super distributer in bihar and Mumbai

27
 MARKETING MIX

What is the marketing mix?

The marketing mix is probably the most famous marketing term. Its elements are
the basic, tactical components of a marketing plan. Also known as the Four P's, the
marketing mix elements are price, place, product, and promotion.

The concept is simple. Think about another common mix - a cake mix. All cakes
contain eggs, milk, flour, and sugar. However, you can alter the final cake by
altering the amounts of mix elements contained in it. So for a sweet cake add more
sugar!

Different Types Of Marketing Mix

Product

Process Price

Physical Promotio
evidence n

People Place

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Marketing decisions generally fall into the following four
controllable categories:-

Product
Price
Place (distribution)
Promotion

The term marketing mix became popularized after Neil H. Borden

published his 1964 article, The Concept of the Marketing Mix. Borden
began using the term in his teaching in the l ate 1940s after James
Culliton had described the marketing manager as a mixer of
ingredients. The ingredients in Bordens marketing mix included
product planning, pricing, branding, distribution channels, personal
selling, advertising, promotions, packaging, display, servicing,
physical handling, and fact finding and analysis .E. Jerome McCarthy
later grouped these ingredients into the four categories that today are
known as the 4 Ps of marketing, Product, price, place and promotion.
These four Ps are the parameters that the marketing manager can
control, subject to the internal and external constraints of the
marketing environment. The goal is to make decisions that center the
four Ps on the customers in the target market in order to create
perceived value and generate a positive response.

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PRODUCT DECISIONS:

The term product refers to tangible, physical products as well as

services. Here are some examples of the product decisions to be made:

Brand name
Functionality
Styling
Quality
Safety

PRODUCT:
A product is anything that can be offered to a market to satisfy a want
or need.

Indias first real fruit drink in a Tetra Pak is available in - Frooti

Mango, Green Mango. Frooti Mango is from premium Indian Mangoes.
Frooti has also been introduced in PET bottle packing. Mango Frooti
contains vitamin A which is essential for eye sight, growth and
healthy skin. Frooti is a delicious and refreshing ready to serve fruit
beverage.

Frooti comes in Fruit drink segment of NCSD category (NON -

CARBONATED SOFT DRINK).

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Frooti is available in following quantities: -

65 ml (only Tetra pack packaging)

200 ml (only pet Bottle)
500 ml (only PET Bottle)
1000 ml (only PET Bottle)
1500 ml (pet bottle)
Hence, we can see that Frooti has got a very large quantity basket.

PRICE DECISIONS:
Some examples of pricing decisions to be made include:

Pricing strategy (skim, penetration, etc)

Suggested retail price
Volume discounts and wholesale pricing
Cash and early payment discounts
Seasonal pricing
Bundling
Price flexibility
Price discrimination

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PRICE:

TETRA PACK PACKAGING

QUANTITY PRICE (Rs.)
65 ml 3.00

PET BOTTLE PACKAGING

QUANTITY PRICE (Rs.)
200 ml 12.00
500 ml 25.00
1000 ml 45.00
1500 ml 60.00

In order to maintain its position as a market leader, Frooti is offering

its product in different quantities and prices depending upon the
consumer requirements, preferences and income -levels.

As we can see from the above table, Frootis new 65 ml packaging is

priced at Rs 3.00 only, targeting the lower income -group and it has
also been introduced in PET bottle packaging as it is more cost -
effective as compared to Tetra-pack packaging to become more
competitive in the market.

32
DISTRIBUTION (PLACE) DECISIONS:

Distribution is about getting the products to the customer.

Some examples of distribution decisions include:

1. Distribution channels
2. Market coverage (inclusive, selective, or exclusive distribution)
3. Specific channel members
4. Inventory management
5. Warehousing
6. Distribution centers
7. Order processing
8. Transportation
9. Reverse logistics

PLACE:

Frooti is the highest distributed brand in Fruit drink segment with an

85% market share in India. Frooti reaches more than 10 lakh retail
outlets through more than 1500 distributors and wholesalers directly
and indirectly. This is borne out by Parl e Agro winning the Beverage
Industry award for the Best Managed Supply Chain 2002 and the

Highest Retail Availability in the year 2002. Frootis excellent

distribution system has already been proved in our market survey and
analysis where 90% of the respondents agreed that Frooti is readily
33
available to them. In the Mumbai ,Bihar and Orissa frooti is running
under the swastik fruits product Pvt . Ltd. Ranchi, Jamshedpur(Tata)
and Patna is the main distribution center of froo ti in Mumbai and
Bihar

PROMOTION DECISIONS:

In the context of the marketing mix, promotion represents the various

aspects of marketing communication, that is, the
Communication of information about the product with the goal of
generating a positive customer response.
Promotion decisions include:

1. Promotional strategy (push, pull, etc)

2. Advertising
3. Personal selling & sales force
4. Sales promotions
5. Public relations & publicity
6. Marketing communications budget

PROMOTION:

In a strategic move, swastika product Pvt Ltd is revamping its

marketing plans in a bid to promote its flagship brand Frooti in the
overcrowded category. In fact, the company has taken a different

34
marketing route by launching a host of new retailing and packaging
initiatives to pump up volumes. five years ago, Parle Agro introduced
a mysterious character called Digen Verma and created a hype
around this person through an aggressive outdoor campaign which was
quiet a success. Parle Agro had introduced two characters called Froo
and Ti on every 200 ml pack of Frooti as part of its retailing initiative.
These two characters are being displayed on the packs of the drink.
And through tongue twisters, puzzles and various interactive games,
the characters are entertaining the children as well as incre asing their
knowledge about famous personalities and current affairs. These two
characters are very different in nature. While Froo is an affable girl
who is good at studies, Ti is a naughty boy who keeps running after
Froo to get his home-work done. With this move, the company expects
to share various activities of its target audience --kids. Recently, Frooti
was introduced in a new tetra pack packaging in 65 ml qua ntity which
is priced at Rs 3.00 each

35
 CHAPTER- 3

MARKET SURVEY AND ANALYSIS

1. PREFERENCE OF CONSUMERS

12 %

CARBONATED
DRINK

FRUIT DRINK

80 %

INFERENCES:

1. The consumers are becoming more health conscious.

2. The market share of NCSD is growing.
3. Great opportunity for Frooti to capture this growing market.

36
IS FROOTI A HEALTH DRINK?

Consumer will perceive any drink as a health drink if he / she think

drinking it will benefit his / her health.
This diagram shows the percentage of respondents who perceive Frooti
as a Health Drink.

30%
NO
23%

YES

CANT SAY

57%

INFERENCES :
1. Frooti is perceived by the majority as a health drink.
2. Health drink consumers should be targeted.

37
CONSUMER AWARENESS REGARDING VARIOUS
FLAVOURS OF FROOTI.

MANGO

GREEN MANGO OTHERS

FLAVOURS 7%
23%

Orange
70%

INFERENCES :

1. This diagram shows the percentage of respondents who are aware

about the various flavors of Frooti.
2. Less promotion of green mango flavor.
3. Great preference of orange flavor among consumers.

38
 SHOULD FROOTI COME IN OTHER FLAVOURS?

NO 23%

YES 77%

INFERENCES :

1. This diagram shows the percentag e of respondents who think that

Frooti should come in other flavours.

39
WHICH FLAVOURS?

40%

35%

30%

25%

OTHER
20% 40% GRAPE
PINEAPPLE
32%
15% ORANGE

10% 20%

5%
8%

0%
ORANGE APINE GRAPE OTHER
APPLE

INFERENCES:

1. In other flavours, consumers have gone for strawberry and lemon.

2. Consumers want Frooti in other flavours.
3. Huge market in flavours other than Mango.
4. Other than Mango, Orange and Pineapple are the most preferred
flavours.

40
IS FROOTI A CHILD DRINK?

SALE

CANT
SAY NO
11% 21%

YES
68%

INFERENCES :

1. Frooti is more of a family drink rather than a child drink.

2. Frooti has market in all age-groups.

41
IS FROOTI READILY AVAILABLE?

NO
10%

YES
90%

INFERENCES :

1. This diagram shows the percentage of respondents who think Frooti

is readily available.
2. Good distribution channel of Frooti.
3. Good demand for Frooti in the market.

42
CHOICE OF CONSUMER

Real
5%

Tropicana
10% MAAZA
25%

FROOTI SLICE
40% 20%

INFERENCES:

1. Emergence of Maaza as Frootis main competitor.

2. Growing threat to Frootis leadership in NCSD category.
3. Increasing consumer preference towards Fruit juice segment.

43
EFFECT OF PROMOTIONAL SCHEMES ON
CONSUMER:

Chart Title

40%

35%

30%
YES
25%
NO
20% MAY BE

15%

10%

5%

0%
YES NO MAY BE

INFERENCES :

1. This diagram shows the percentage of respondents whose buying

behavior is influenced by promotional schemes.
2. Consumers are attracted towards promotional schemes.
3. Buying decision of consumer can be changed through consumer
schemes.

44
VALUE FOR MONEY

Value for money means the real value of the product in relation to the
price of the product.

30%

25%

20%

15%

10%

5%

0%
Frooti Maaza Slice Real Tropicana

INFERENCES:

This diagram shows the satisfaction the consumer derives by

consuming the product in terms of money in a 1 -5 point scale given on
the y-axis of the diagram.
(1 indicating BEST and 4 the WORST).

45
CONSUMER AWARENESS REGARDING PACKAGING
OF FROOT

YES
YES NO CANT SAY

5% 15%

80%

PET BOTTLE

CANT
SAY
NO 13%
4%

YES
TETRA PACK 83%

INFERENCE:
1. Consumer is well aware of packaging of Frooti .

46
CONSUMER AWARENESS REGARDING AVAILABILITY
OF VARIOUS QUANTITIES OF FROOTI.

CANT SAY 65 ML
11%

YES
50%
NO
39%

CANT SAY 200 ML

5%

NO
25%

YES
70%

47
 500 ML
CANT SAY
7%

YES
NO 50%
43%

1000 ML
CANT SAY
9%

YES
49%
NO
42%

INFERENCE:

1. As Frooti in 65 ml quantity was recently introduced and half of the

respondents know about it, this shows good promotion and good
initial demand for new packaging.

48
CONSUMER PREFERENCE FOR VARIOUS QUANTITIES
OF FROOTI

35
35

30
30

25
25

20 65ml 200ml

15
500ml 1000ml
10
10

0
65ml 200 ml 500ml 1000ml

INFERENCES:
1. There is good demand for all the quantities.
2. Great demand for 65&200 ml.
3. Introduction of 65 ml was a good move.

49
CONSUMER RESPONSE FOR THE MOST CONVENIENT

FORM OF PACKAGING

GLASS TETRA-PACING
BOTTLE
7%

TETRA-
PACING
40%

PET - BOTTLE
53%

INFERENCE:

1) As Frooti was the first to introduce PET bottle packing in N CSD

category, this shows it was the ri ght move from convenience point
of view.

50
TESTING OF HYPOTHESIS

Hypothesis 1:
1. Null hypothesis(H0)= Fruit Drink is the preferred attribute which customers
look for in Frooti
2. Alternate hypothesis (H1) = Fruit Drink is not the preferred factor for which
customers looks in Frooti
3. Level of significance= Let 5% be the level of significance in testing the
hypothesis Since the test s two tailed test , the value of z = 1.96

4. Test formula:-

p - p

Z=
{p (1-p)/n}

Where
p= sample proportion (calculated from graph) = 80%
p=population proportion (known) = 81%
n= sample size=100
.81-.8

Z=
{.8(1-.8)/100}

=.25

Calculated value Z=.25 falls within acceptance level in +1.96, so hypothesis is

accepted.

Conclusion: Customers see the Frooti as fruit drinks

51
Hypothesis 2:

1. Null Hypothesis (H0)=frooti is a child drink

2. Alternate Hypothesis(H1)= frooti is not a child drink
3. Level of significance= Let 5% be the level of significance in testing the
hypothesis Since the test s two tailed test , the value of z = 1.96

4. Test formula:-

p - p
Z=
{p (1-p)/n}

Where
p= sample proportion = 44%
p=population proportion = 34%
n= sample size=100
Now
.34 .44
Z=
{.44 (1-.44)/100}

= -2.01

Calculated value is not fall in acceptance level ,so the hypothesis is rejected

Conclusion: The Frooti is not only child drinks, it can be used by adults

52
Hypothesis 3:

1. Null Hypothesis (H0)= Frooti is readily available

2. Alternate Hypothesis(H1)= Frooti is not readily available

3. Level of significance= Let 5% be the level of significance in testing the

hypothesis Since the test s two tailed test , the value of z = 1.96

4. Test formula:-

p - p
Z=
{p (1-p)/n}

Where
p= sample proportion = 90%
p=population proportion = 91%
n= sample size=100
Now
.91 .9
Z=
{.9 (1-.9)/100}

= .33
5. Calculated value is fall in acceptance level, so hypothesis is accepted

Conclusion:
The Frooti is readily available in market.

53
 SWOT ANALYSIS

The overall evaluation of a ones strengths, weaknesses, opportunities

and threats is called SWOT analysis.

STRENGTHS OF FROOTI:

1. Market leader in NCSD category-60% market share.

2. Innovative - First packaged Mango drink in Indian market, first to
introduce Tetra pack, PET bottle packaging in NCSD category.
3. Quick market responder - Introduced 65 ml packaging to cater
different segments.
4. Frooti has got a very large quantity basket - available in various
quantities like 65 ml, 200 ml, 500 ml and 1 Liter.
5. Efficient distribution network -readily available.
6. Frooti is a health drink - Contains Vitamin A.
7. Frooti has got a strong Brand Equity.

WEAKNESSES OF FROOTI

1. Frooti is not perceived as a health drink. As per our survey majority of our
respondent didnt consider Frooti has a health drink.
2. Frooti has limited variety of flavour - only mango and green mango.
3. Frooti means mango, syndrome in the mind of consumers.

54
4. Margin given to retailers and distributors is less as compared to its competitors.
5. The main target audience of Frooti is kids.
6. Frooti has no brand ambassador.
7. No brand expansion - Brand equity of Frooti is not utilized properly.

OPPORTUNITIES FOR FROOTI

1. Huge untapped unorganized sector in NCSD category.

2. Huge untapped market in other flavours - Orange, Pineapples,
Grape.
3. Growing market share of NCSD category.
4. Demographically, in the coming years around 55% of the population
will consist of below 35 years in age, which should be major
target market for Frooti.
5. Increasing health awareness among consumers - As per our survey
88% of the respondents preferred fruit drink to carbonated
drink.

THREATS FOR FROOTI

1. Decreasing share in NCSD category - Fruit juice segment consisting

of Real and Tropicana is increasing at the rate of 20 -25% per
annum as compared to sluggish growth in other segment.
2. Presence of huge unorganized market.

55
3. High consumer preference for flavours other than mango and green
mango.
4. Competition with global giants - Coke and Pepsi.

56
RECOMMENDATIONS FOR FROOTI ON THE
BASIS OF MARKETING MIX

PRODUCT:

1. Frooti in Others Flavors:

1. As per our survey, around80% of the respondents want Frooti in

flavors other than mango and green mango like Orange,
Pineapple and Grape.
2. Now, the most striking fact is that Frooti is available in Orange,
like Mumbai and Pune.
3. These flavors are not available in Ranchi and Patna region.
4. Our main competitor MAAZA is available in many flavors like
mango, orange, guava, grape, apple, pineapple and mix fruit etc.
5. So, to compete with MAAZA and other competitors, the present
variants of Frooti in orange, pineapple and strawberry flavor
should be made available all ove r India.
6. Frooti should also be made available in grape flavor as there is a
great demand for this flavor, especially in the less than 20 age-
group segment.

57
2. The Appy fizz case:

1. Appy fizz is a new product launched by the swastik (franchise of

Parle agro) in Bihar and Mumbai. It is a nectar drink which
comes in apple flavor.
2. Now the question is that swastik (franchise of Parle agro) has not
used the brand equity of Frooti in branding Appy fizz.

The reasons for this can be:-

1. Appy fizz is a nectar drink and is in a different segment from Frooti
which is in the fruit drink segment.
2. Parle agro is promoting Appy fizz as a lookalike for champagne
drink and is targeting the upper income class consumers.

PLACE:

1. Retail chain of NCSD in India

2. To capture the huge unorganized sector, Frooti should be promoted
as a retailing chain outlet in India on the lines of Main road
which is in the retailing of coffe e.
3. This outlet should contain all the variants of Frooti in different
flavours and quantities and it should also be served in glasses.
4. Also, this outlet can be used to provide fresh fruit juices in various
flavours at a very reasonable price. This move will help frooti to

58
 capture a major chunk of the huge unorganized sector which is
more than Rs 500 crore.
5. But, this is a highly risky move and requires lot of capital so,
swastik should first experiment by opening a few outlets.

PROMOTION:

1. The nutrient content of Frooti should be highlighted on the package so that the
consumer can become more aware and perceive Frooti as a Health drink.
2. The quality standard of Frooti should be approved by a reputed authority or
organization (like ISO series) and this be promoted.
3. Taking the cost consideration into account, swastik can go for more distributor
and retailer margins, as by getting more margins the retailers and the
distributors will promote Frooti more efficiently. It should also provide more
consumer schemes.
4. Swastik can also promote Frooti by providing various offering like
Refrigerators.

59
BRAND AMBASSDOR FOR THE FROOTI:

1. Frooti is needed to be promoted as a health drink and should target

not only the kids but also the other members of the family.
2. For this Frooti should project its brand ambassador who will help
consumers perceive it as a health drink.
3. The Brand ambassador should be someone who symbolizes good
health and along with him / her a cartoon character (someone
very popular among kids) should also be introduced so that
Frooti does not loses its current taret audience -kids.

SUGGESTION:

1. Frooti can go for Salman Khan as a brand ambassador as he is very

popular in India and symbolizes good health. (Punch line can be
something like After gym, have a Frooti) Along with him, Frooti
should also go for a famous cartoon.

2. Character like Scooby Doo or Pokmon to target the kids and both
of them should feature together in the advertisement.

60
CONCLUSION:

We can conclude the following:

Parle Agro (Frooti) is one of the leading food and beverage organisation based in
Mumbai in every consumer minds. They have use many attractive and intelligent
ways of orientation, market research, their market segmentation, targeting and to
their positioning, to their marketing mix and the environment to attract their
customers.

Frooti is a market orientated product which means that according to the

consumers needs and wants it produces its product. Frooti has 75% market
share in Fruit juice based product and is the market leader in fruit juice
segment.

Frootis strategy is to make their product available anywhere and wherever. Frooti
has segmented its product on the basis of Demographic, Geographic and
Psychographic and has successfully achieved its objective over the years by using
this type of Segmentation. Frooti has always been positioned as a drink for kids but
now the company has position it as a drink for the youth, especially, the college
going teenagers and their attractive Tag Line why grow up has convinced the
consumers that Frooti is not only for Kids, Youth & teenagers but for everyone.
Parle Agros Frooti focuses more on product, packaging, pricing and process out of
the 7Ps. There are varieties of packaging (of Frooti) made available to consumer
from lower to premium range. Packaging is another aspect for Frooti as the
appearance of the product will make the consumer attract and buy.
61
Frooti in India and Africa (Congo) are different as from the product to process. In
Africa (Congo) they have specifically aimed at Pricing, Product and Process
and have successfully reached in the consumers minds.

We can conclude the following:

1. By taking some initiatives, Frooti can compete with the fruit juice
segment comprising of Real and Tropicana, and can maintain its
position as a market leader in the NCSD category.

2. The consumers response to the new packaging (PET botte and 65 ml

Tetra pack) of Frooti is positive as shown in the survey.

62
BIBLIOGRAPHY:

1. Philip Kotler , Marketing Management, Millennium edition.

2. www.swastik.org.in
3. www.parleagro.com
4. www.netmba.com
5. www.indiainfoline.com
6. www.financialexpress.com
7. Business line.
8. Brand Equity, Economic Times
9. Kotler, P. Armstrong, G., Saunders, J & Wrong, V. 2002. Principles of
marketing. Third European Edition. Prentice-hall, Harlow: Pearson
education limited.
10. James C. Anderson and James A. Narus, business market management:
understanding, Creating and delivering value, pp 15 and 213.
11. Doyle p., Stern P., (2006), marketing management and strategy, prentice
hall.
12. Kotler, P. and G. Armstrong, Marketing: An Introduction. Third ed.1993,
USA: Prentice Hall, Inc.
13.Stimpson, P.S., 2006. Business Studies. Chennai: Chennai Micro Print (P)
ltd.
14.Definition of marketing: Marketing definition and marketing concept, from
http://www.learningmarketing.net/marketing.htm
15.http//www.mckinseyquartely.com
16.7 Ps of marketing Healthcare Success Strategies, Retrieved from
http://www.healthcaresuccess.com/articles/the 7-ps-of-marketing.html
63
17.7 Ps extended marketing mix, Retrieved from
http://www.12manage.com/methods booms bitner 7Ps.html

64
 QUESTIONNAIRE

Dear Sir / Madam:

This questionnaire is part of a market study being conducted by me. The aim of the
study is to analyze the strategies adopted by frooti in the various stages of its
lifecycle.
Any information provided would be used only for academic purpose and kept
confidential.

Name: Age:
Occupation: Contact No:

1. Do you drink Soft Drinks?

Yes No

2. If yes, which Soft Drinks ?

Carbonated Drinks
Fruit Drinks

3. Do you prefer frooti as a health drink ?

Yes No Cant Say

4. Should Frooti come in other flavor ?

Yes No

65
5. Which flavour would you prefer ?
Orange Pineapple Grape
Others

6. Is Frooti a child drink ?

Yes No Cant say

7. Is Frooti easily available ?

Yes No

8. Do you think advertising influence you to drink Frooti ?

Yes No

9. Which drink give you more value ?

Frooti Mazza Slice
Real Tropicana

10. Which fruit drink do you prefer the most ?

Frooti Maaza Slice
Tropicana Real

11. Which quantity do you prefer most?

65 ml 200 ml 500 ml
1000 ml

66
 12. What is your opinion of the brand?
Poor Bad Good
Excellent

Any recommendation, suggestion , you want to give for Frooti for betterment of
__________________________________________________________________
__________________________________________________________________
_______________________________________________________
PLACE:-
DATE: SIGNATURE

67