A comparative study on fruit juices

Market researchBy

ASHISH KUMAR KESHRI(PGD08017)

Institute Of Management Studies, Noida

2010

Institute of Management Studies, NOIDA

A

Project Report on

Comparative Study on fruit juices

As a partial fulfillment for the award of PGDM Degree under

AICTE (2008 - 2010)

Submitted to: Submitted by:

MRS. SONIKA SHARMA ASHISH KUMAR KESHRI

PGD08017

2

To Whom It May Concern

This is to certify that Mr. ASHISH KUMAR KESHRI Roll Number PGD08017 of PGDM 6th term is a bonafide regular student of this institute for the session 2008 – 2010.

He/ She have completed the project report titled “A Comparative Study on Fruit Juices” under my supervision, as a part of partial fulfillment for the award of PGDM Degree under AICTE. His/ Her report is satisfactory and not copied from anywhere to the best of my knowledge.

Date:

Signature

Project Supervisor

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ACKNOWLEDGEMENT

A work is never a work of an individual. We owe a sense of gratitude to the intelligence

and co-operation of those people who had been so easy to let us understand what we

needed from time to time for completion of this exclusive project.

I want to express my special gratitude towards Mrs. Sonika sharma lecturer,

IMS, noida for helping me in completion of my project.

Last but not the least, I would like to forward our gratitude to all the people who always

endured me and stood by me and without whom I could not have envisaged the

completion of my project.

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ContentsContents1. INTRODUCTION 1. INTRODUCTION ………............................................................... 8 to 39………............................................................... 8 to 39

1.1 General Introduction1.1 General Introduction

1.2 Objectives and scope of the Project1.2 Objectives and scope of the Project

1.3 use and importance of the study1.3 use and importance of the study

1.4 marketing research1.4 marketing research

2. RESEARCH METHODOLOGY 2. RESEARCH METHODOLOGY …………………………………… 40 to 43…………………………………… 40 to 43

3. PROFILE OF THE ORGANISATION: “Surya Foods & Agro Ltd”. …………………………………………. 44 to 51

4. RESEARCH ANALYSIS……………………………………………. 52 to 62

4.1 Consumer awareness for fruit juices.

4.2 Consumer demand for fruit juices

4.3 Consumer demographic profile and preference for fruit juices

4.4 Consumer preferred brand

4.5 Consumer preference for packaging

4.6 Awareness regarding the fresh gold

4.7 Competitors market share

4.8 Most popular flavor

4.9 Purchasing capacity of consumer

4.10 Juice variety

4.11 Consumer concern regarding features

5. CONCLUSION……………………………………………………….. 63 to 65

6. RECOMMENDATIONS…………………………………………… .. 66 to 68

7. APPENDIX7. APPENDIX…………………………………………………………… 69 to 71…………………………………………………………… 69 to 71

A) Questionnaire SampleA) Questionnaire Sample

B) BibliographyB) Bibliography

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EXECUTIVE SUMMARY

The whole study or research explains about the consumer’s buying behavior and their

preferences regarding fruit juices. For this five brands were taken into consideration

Real, Real Active, Saint, Tropicana and Fresh Gold. Basically the emphasis was given

to the Fresh Gold. In this research I tried to know the perception regarding the Fresh

Gold juice.

Consumer buying behavior is a generic term explains about the consumer choice or

preference that they have for a particular product. Consumer’s buying behavior tells the

companies about the modifications or features of the products. For this research some

of the main features were taken into consideration like flavor, availability, price,

packaging and the most important “awareness”. Because during research I came to

know that there are so many people who even don’t know about the Fresh Gold that

there is such kind of fruit juice available in the market. So I tried to focus on the

awareness of the consumers. After this there are so many competitors in the market like

Real, Tropicana etc. but the competition become tougher when we talk about the local

juice makers and sellers.

The consumer gets confuse when he has got the more options at an affordable price in

respect of quality, availability, packaging etc. and choose the product in which he feels

the maximum satisfaction or the best deal.

It is found from the research that people go for the product which is easily available and

affordable and also it should be according to their parameters.

The strategy for the product can be changed by comparing the different factors that

has obtained from the research. Allocation of largest consumer is the important work for

the producer so that they can match their product nature with the preference of the

consumer who are more willing to buy fruit juices.

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1. INTRODUCTION

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1.1 GENERAL INTRODUCTION

India is the world's second largest producer of food next to China, and has the potential

of being the biggest with the food and agricultural sector. The total food production in

India is likely to double in the next ten years and there is an opportunity for large

investments in food and food processing technologies, skills and equipment, especially

in areas of Canning, Dairy and Food Processing, Specialty Processing, Packaging,

Frozen Food/Refrigeration and Thermo Processing. Fruits & Vegetables, Fisheries, Milk

& Milk Products, Meat & Poultry, Packaged/Convenience Foods, Alcoholic Beverages &

Soft Drinks and Grains are important sub-sectors of the food processing industry.

Health food and health food supplements is another rapidly rising segment of this

industry which is gaining vast popularity amongst the health conscious.

India is one of the worlds major food producers but accounts for less than 1.5 per cent

of international food trade. This indicates vast scope for both investors and exporters.

Food exports in 1998 stood at US $5.8 billion whereas the world total was US $438

billion. The Indian food industries sales turnover is Rs 140,000 crore (1 crore = 10

million) annually as at the start of year 2000. The industry has the highest number of

plants approved by the US Food and Drug Administration (FDA) outside the USA.

India's food processing sector covers fruit and vegetables; meat and poultry; milk and

milk products, alcoholic beverages, fisheries, plantation, grain processing and other

consumer product groups like confectionery, chocolates and cocoa products, Soya-

based products, mineral water, high protein foods etc. We cover an exhaustive

database of an array of suppliers, manufacturers, exporters and importers widely

dealing in sectors like the -Food Industry, Dairy processing, Indian beverage industry

etc. We also cover sectors like dairy plants, canning, bottling plants, packaging

industries, process machinery etc.

The most promising sub-sectors includes -Soft-drink bottling, Confectionery

manufacture, Fishing, aquaculture, Grain-milling and grain-based products, Meat and

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poultry processing, Alcoholic beverages, Milk processing, Tomato paste, Fast-food,

Ready-to-eat breakfast cereals, Food additives, flavors etc.

The emerging trends in the market have confused producers to sell their products to

gain appropriate profit. India is growing day by day in various sector and preference of

people also changing according to change in business trends. Consumer buying

behavior is different according to the product. This study shows the consumer

preference with respect to fruit juices. The demand towards the product can be known

from the demographic profile, density of population, retail links and their expectations

towards the product. Fruit juices now a day become a social drink which captured the

attention of each individual of the society. The restrictions for each type of alcoholic

drinks gave a ultimate way of demand for fruit juices.

In Indian market the sever completion among the producers have encouraged them

to go for innovative ways. The competitors have a strong belief towards their brand and

products. Producers have inverted their preferences for marketing their products near

local consumers. The consumers are mostly lean towards the brands which come

across them in the daily life while going through television, news papers, and

magazines, banners displayed in roads and from websites. The juice marked had

turned into a competitive market as there are similar competitors in the market serving

same type of juice by different brand name. The brand name of fruit juices have

changed the consumer preferences because of their easy availability, price, quality,

packaging, quality etc. Here in this case those type of fruit juices brand have taken into

account who has their most market shares in the market.

The consumer buying behavior shows a way to the competitors in what respect they

can enhance themselves to exist in the market. The blind interpretation of producer

force itself towards severe loss. The perception towards the individual product shows

that whether the consumer will buy it or not. The emerging changes observed in the

different levels of consumers. The consumer also changes their preferences according

to their capability of buying for that particular product. The distinct characteristics may

sometimes attract the consumers to buy the product which they can not have purchased

before. The retail chain also plays an important role towards it which shows the

availability of product at the time of need. The consumers are again distinguished into

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different age groups because of their different consumption pattern of food. In some

case it is observed that fruit juices are only acceptable for sports person for energy as

well as for relaxation, but the health consciousness factor has affected a lot each

individual so that they can drink fruit juices for good health. The campaign for fruit juices

have solved much disbelief among the consumers.

The study shows consumer buying behavior by considering the product like

Tropicana, Real, Fresh gold, Saint and Leh berry. Some of the factors are taken into

consideration like price, brand, quality, consumer type and profession of different

consumers who purchase fruit juices. Their technique of buying is the key of our study.

The buying behavior has an important role towards the growth of individual product in

the competitive market. The market is dynamic in nature and needs innovations for

existence.

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1.2 OBJECTIVES & SCOPE OF THE PROJECT

To analyze the consumer awareness for fruit juices.

This objective gives a clear idea regarding the consumer awareness towards the

fruit juice as well as towards the different brands prevailing in the market. The

consumer’s awareness creates a demand towards the particular product.

Analyze the consumer; their buying behavior and demand.

The consumer buying behavior is an important parameter which consist of

consumer preferences. The demand of a project can be known from the

consumer’s buying pattern and parameters that he considers during buying a fruit

juice like quality, availability, price, packaging and delivery mode. The demand also

depends upon some of the other factors like purchasing power population,

promotional activities of product in the market and seasonality.

Understanding the demographic profile of consumers.

The consumer acceptance depends upon the knowledge and maturity level that he

has gained during his age for the different food habits prevailing in the surrounding.

The age factor is an important factor to know product demand for a particular age

group. So the interest can be made to motivate those age groups for buying their

product.

Identification of influencing factor for purchase.

Consumers generally go for some of the general factors while purchasing a product

like brand, company name, expiry date, price, ingredients added, price and quality.

The perception which a customer interpret from the outer level of the product

influence him a lot to buy that. The influencing factor of purchasing makes a

producer to understand the customer need.

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1.3 USE AND IMPORTANCE OF THE PROJECT1.3 USE AND IMPORTANCE OF THE PROJECT

To know about the various aspect of juice market and also how to penetrate in the wellTo know about the various aspect of juice market and also how to penetrate in the well

established market. Some of the things are required to know, which are as given belowestablished market. Some of the things are required to know, which are as given below

——

(a). FRUIT JUICE MARKET AND CONSUMER BEHAVIOR

THE MARKET SENARIO FOR FRUIT JUICES

India produces about 9 million tons of fruits every year, growing at a rate of 12% per

annum. The total market for fruit juices is 230 million liters which includes both packed

and freshly made fruit juices. The proportion of packed fruit juices is small at just 3.4

million liters just over 1% of market, but even this huge volume translate to just 20

milliliters per capital consumption as against 45 liters in Germany, 42.5 liters in

Switzerland and 39 liters in USA. The key issue before the markets was to raise the

consumption of packet fruit juices. The consumer perception is not the constant one for

the different products available in the market. The perception of consumer depends

upon the advancement made by the producers which attracts consumers a lot and

holds the market share is huge manner. The market of fruit juices is concerned about

the facts behind fruit juices so the need for it is not diminishing but it is rapidly

increasing day by day. For every fruit juice there is certain amount of market share but

the real holding of market share depends upon the identity of the product by tacking into

account price, brand, quality, quantity, packaging availability, flavor etc.

The key Note Market Report on fruit juices and health drink covers the market for fruit

juice, health drinks and fruit drinks. In general, carbonates are excluded from this report,

although drinks of this type also be fruit based. However, ther is some overlap with the

carbonates sector as health drinks, which might be carbonated and available in ready to

drink formats of cordials are included.

For Indians drinking juice is not a new concept. Street corner vendors have been

popular for years. Fruit juices in the unorganized segment are considered cheaper and

fresher by the consumers, even though they are relatively unhygienic. The organized

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natural juice market is currently in a nascent stage though it is growing at a healthy rate

35-40% per annum. This market has had high entry barriers. Few customers are

convinced about packaged juice being preservative free, and therefore, as healthy as

freshly squeezed juice. The drinks market is relatively more mature and growing at a

healthy at 20-25%. In 2003, the total UK fruit juices and health drinks market was worth

an estimated £ 2.19 billion at retail selling price (RSP), a rise of 6.6% on 2002. Fruit

juice was the largest sector in 2003, accounting for 40.2% of the total market. Despite

the relatively mature nature of the fruit juice sector, the market grew strongly in terms of

both value and volume between 1999 and 2003. In addition, fruit juices, fruit drinks and

health drinks recorded a high household penetration level. A number of factors

contributed to this growth, including the increasing interest in health and diet, which is

undoubtedly one of the main drivers. In general, fruit juices and health drinks are

regarded as healthy choices, certainly in comparison to alternative soft drinks, such as

carbonates.

In addition, the strength of the economy and rising household disposable income levels

have contributed to the growth of premium-priced products, such as freshly- squeezed

juice.

Over the next 5 years, key Note forecasts that the fruit juices and health drinks market

will remain healthy, with sales growing by an average annual rate of just over 6%.

Increasing concerns relating to health and diet will play a major role in the market, as

consumers move away from products that are perceived as being unhealthy, such as

carbonated soft drinks, towards more natural alternatives, such as fruit juices. In

addition, growing awareness of the importance e of the Government’s ‘five-a- day’

campaign to increase fruit and vegetable consumption will encourage new entrants into

the market. In particular, younger consumer might regard fruit juice as a convenient way

of boosting their consumption of fruit and vegetables.

The fruit juice sector will be boosted by growing demand for premium-priced

products, such as smoothies. In addition, heavy marketing expenditure and the

introduction of new products that are fortified with vitamins and other additives should

help to drive sales. In some European countries, drink with added vitamin A, C and E

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have proved very successful. Although this sector is still in its infancy in the UK, it could

show rapid growth over the next 5 years.

CONSUMPTION HABITS

81% of fruit juice consumption in India was unplanned and 38% was pure impulse.

Planned purchase of fruit juice was prevented only in metros. 60% of fruit juices

consumption happened outside the home. Fruit juice consumption was a group

activity-just 2% of the population had the fruit juice alone. Indians prefer “fresh

juices” made in front of their eyes. The origin of this preference lies in the belief that

is packed looses freshness. In the past 15 years, more than 10 brands of tetra pack

and bottled fruit juices have been launched in India. This brand also happen to be

the tetra packed fruit drinks and belonging to the largest soft drink manufacturer in

India.

In a country used to having fresh food all the time, the consumer wanted to

see the product. In food products at time seeing is creating the impulse!! tetrapack

manufactures have defined the basic need of Indian consumers by not allowing the

consumers to see the product.

In a country like India which has limited budgets for packaging given the low

disposable income level and thereby the packed foods don’t carry very attractive and

inviting pack graphics, the lack of transparency adds to discomfort levels of the

consumers.

Research showed that more than 60% preferred to see the fruit juice they

were buying. India is becoming a country which wants western style packing with

Indian style taste and thins was posing a great challenge with limited cold storage

and cold chain capabilities.

Vivita-a new entrant has tried to overcome the “freshness of the juice” issue

by packing fruit juices in aseptic PET bottle with a no preservatives label. The

consumer is reassured by being able to see the product before buying.

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INDIAN KEY SENSUS STATICS OF LAST YEAR

POPULATION 1100 Mn.RURAL POPULATION 805 Mn (73%)URBAN POPULATION 289 Mn (26%)

MALE POPULATION 578 Mn(52%)FEMALE POPULATION 506 Mn(46%)

DENSITY 290/KM2*

PERSON PER HOUSE HOLD 5.52*

DISTRICTS 466URBAN AGGLOMERATION AND TOWNS

3768

VILLEGES (INHABITED) 627000

*excluding Assam and Jammu & Kashmir

Table-1

(b). THE LATENT DEMAND AND POTENTIAL INDUSTRIAL EARNINGS FOR FRUIT JUICES IN INDIA

The concept of is rather subtale. The term latent typically refers to something that is

dormant, not observable, or not yet realized. Demand is the notion of an economic

quantity that a target population or market requires under different assumptions of price,

quality and distribution, among other factors. Latent demand, therefore, is commonly

defined by economists as the industry earning of a market when that market become

accessible and attractive to serve by competing firms. Latent demand, therefore, is

commonly defined by economists as the industry earnings of a market when that market

becomes accessible and attractive to serve by competing firms. It is a measure,

therefore, of potential industry earnings (P.I.E.) or total revenues (not profit) if India is

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served in an efficient manner. It is typically expressed as the total revenues potentially

extracted by firms. The “market” is defined at a given level in the value chain. There can

be latent demand at the retail level, at the wholesale level, the manufacturing level, and

the raw material level (the P.I.E. of higher levels of the value chain being always smaller

than the P.I.E. of levels at lower levels of the same value chain, assuming all levels

maintain minimum profitability).

The latent demand for fruit juices in India is not actual or historic sales. Nor is latent

demand future sales. In fact, latent demand can be either lower or higher than actual

sales if a market is insufficient (i.e. not representative of relatively competitive levels).

Inefficiencies arise from a number of factors, including the lack of international

openness, cultural barriers to consumption, regulations, and cartel-like behavior on the

part of firms. In general, however, latent demand is typically larger than actual sales in a

market.

PRODUCTION OF FRUIT JUICES IN INDIA

AVERAGE (1992/1994)

2002 2003 2004

(‘000 TONNES)Banana juices 9718 16820 16820 16920Mango juices 10108 10640 10780 10800Ornage juices 1743 3120 3070 3070Apple juices 1205 1160 1470 1470

Lemons and lime juices

863 1440 1420 1420

Pineapple juices 956 1180 1310 1300

Grapes juices 684 1210 1150 1200

TABLE-2

For reasons discussed later, this report does not consider the nation of “unit

quantities”, only total latent revenue (i.e. a calculation of price time quantity is never

made, though one is implied). The unites used in this report are U.S. dollars not

adjusted for inflation (i.e. the figure incorporate inflationary trends). If inflation rates vary

in a substantial way compared to recent experience, actually sales can also exceed

latent demand (not adjusted for inflation). On the other hand, latent demand can be

typically higher than actual sales as there are often distribution inefficiencies that reduce

actual sales below the level of latent demand.

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As mentioned in the introduction, this study is strategic in nature, taking an

aggregate and long run view, irrespective of the players or products involved. In fact, all

the current products or services on the market can cease to exist in their present form

(i.e. at a brand, R&D specification, or corporate image level) and all the players can be

replaced by other firms (i.e. via exits, entries, mergers, bankruptcies etc), and their will

still be latent demand for fruit juices at the aggregate level. Product and service

offerings and the actual identity of the players involved, while important for certain

issues are relatively unimportant for estimates of latent demand.

In order to estimate the latent demand for fruit juices across the states or union

territories and cities of India, we use to multistage approach. Before applying the

approach, one needs a basic theory from which such estimates are created. In this

case, we heavily rely on the use of certain basic economic assumptions. In particular,

there is an assumption governing the shape and type of aggregate latent demand

functions. Latent demand functions relate the income of a state or union territory, city,

household or individual to realized consumption. Latent demand (often realized as

consumption when an industry in efficient) at any level of value chain takes place if an

equilibrium is realized. For firms to serve a market, they must perceive a latent demand

and be able to serve that demand at a minimal return. The single most important

variable determining consumption, assuming latent demand exists, is income (or other

financial resources at higher levels of the value chain). Other factors that can pivot or

shape demand curves include external or exogenous shocks (i.e. business cycle), and

or changes in utility for the product in question.

Ignoring, for the moment, exogenous shocks and variations in utility across

geographies, the aggregrate relation between income and consumption has been a

central theme in economics.

Any study of latent demand requires that some standard be established to define

“efficiently served”. Having implemented various alternatives and matched these with

market outcomes, we have found that the optimal approach is to assume that certain

key indicators are more likely to reflect efficiency than others. These indicators are

given greater weight than others in the estimation of latent demand compared to others

for which no known data are available. Of the many alternatives, we have found the

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assumptions that the highest aggregate income and highest income-per-capita markets

reflect the best standard for “efficiency”. High aggregate income alone is not sufficient

(i.e. some cities have high aggregate income, but low income per capita and cannot

assume to be efficient). Aggregate income can be operational zed in a number of ways,

including gross domestic product (for industrial categories), or total disposable income

(for household categories; population times average income per capita, or number of

households times average household income).

Latent demand is therefore estimated using data collected for relatively efficient

markets from independent data sources (e.g. official Chinese agencies, the world

resource institute, the organization for economic cooperation and development, various

agencies from united nations, industry trade association, the international monetary

fund, Euromonitor, Mintel, Thomson financial services, the U.S. industrial outlook and

world bank). Depending on original data source used, the definition of “frozen fruits and

concentrated fruit juices” is established. In the case of this report, the data were

reported at the aggregate level, with no further breakdown or definition. In other words,

any potential product or service that might be incorporated within frozen fruits and

concentrated fruit juices falls under this category. Public source rarely report data at the

disaggregated level in order to protect private information from individual firms that

might dominate a specific product-market. These sources will therefore aggregate

across components of a category and report only the aggregate to the public. While

private data are certainly available, this report only relies on public data at the

aggregate level without reliance on the summation of various category components. In

other words, this repot does not aggregate a number of components to arrive at the

“whole”. Rather, it starts with the “whole”, and estimates the whole for all states or union

territories and cities in India (without needing to know the specific parts that went into

the whole in the first place).

Base on the aggregate view of concentrated of fruit juices as defined above , data

were then collected for as many geographic locations as possible for the same

definition, at the same level of the value chain. This generates a convenience sample of

indicators from which comparable figures are available. If the series in question do not

reflect the same accounting period, then adjustments are made. In order to eliminate

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short term effects of business cycles, the series are smoothed using an 2 year moving

average weighting scheme (longer weighting schemes do not substantially change the

results). If data are available for a geographic region, but these reflect short-run

aberrations due to exogenous shocks (such as would be the case of beef sales in a

state or union territory or city stricken with foot and mouth disease), these observations

were dropped or “filtered” from the analysis.

In some cases, data are available on a sporadic basis. In other cases, data may be

available for only one year. From a Bayesian perspective, these observations should be

given greatest weight in estimating missing years. Assuming that other factors are held

constant, the missing years are extrapolated using changes and growth in aggregate

national, state or union territory and city level income. Based on the overriding

philosophy on a long run consumption function (defined earlier), states or union

territories and cities which have missing data for any given year, are estimated based

on historical dynamics of aggregate income for that geographic entity.

Given the data available for the first three steps, the latent demand is estimated

using a “varying- parameter cross-sectionally pooled time series model”. Simply stated,

the effect of income on latent demand is assumed to be constant unless there is

empirical evidence to suggest that this effect varies (i.e. the slope of the income effect is

not necessarily same for all states or union territories or cities). This assumption applies

along the aggregate consumption function, but also over time (i.e. not all states or union

territories or cities in India are perceived to have the same income growth prospects

over time). Another way of looking at this is to say that latent demand for frozen fruits

and concentrated fruit juices, adds, drinks, and non alcoholic cocktails is more likely to

be similar across states or union territories or cities that have similar characteristics in

terms of economic development.

The approach is useful across geographic regions for which some notion of non-

linearity exists in the aggregate cross region consumption function. For some

categories, however the reader must realize that the numbers will reflect a state’s, union

territory’s or city’s contributions to latent demand in India and may never be realized in

the form of local sales.

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Nonlinearities are assumed in case where filtered data exist along the aggregate

consumption function. Because India has more than 5,000 cities, there will always be

those cities, especially toward the bottom of the consumption function, where non-liner

estimation is simply not possible. For these cities, equilibrium latent demand is assumed

to be perfectly parametric and not a function of wealth (i.e. a city’s stock of income), but

a function of current income (a city’s flow of income). In the long run, if a state or union

territory has no current income, the latent demand for fruit juices is assumed to

approach zero. The assumption is that wealth stock fall rapidly to zero if flow income

falls to zero (i.e. cities which earn low level of income will not use their savings, in the

long run, to demand concentrated fruit juices). In a graphical sense, for low income

cities, latent demand approaches zero in a parametric linear fashion with a zero-zero

intercept. In this stage of estimation procedure, a low-income city is assumed to have a

latent demand proportional to its income, based on the cities closest to it on the

aggregate consumption function.

Based on the models described above, latent demand figures are estimated for all

major cities in India. These are then aggregated to get state or union territory totals.

This report considers a city as a part of regional and national market. The purpose is to

understand the density of demand within a state or union territory and the extent to

which a city might be used as a point of distribution within its state or union territory.

From an economic perspective, however, a city does not represent a population within

rigid geographical boundaries. To an economist or strategic planner, a city represents

an area of dominant influence over markets in adjacent areas. This influence varies

from one industry to another, but also from one period of time to another. We allocate

latent demand across areas of dominant influence based on the relative economic

importance of cities within its state or union territory. Not all cities (e.g. the smaller

towns ) are estimated within each state or union territory as demand may be allocated

to adjacent areas of influence. Since some cities have higher economic wealth than

others within the same state or union territory, a city’s population is not generally used

to allocate latent demand. Rather, the level of economic activity of the city vis-à-vis is

used.

(c). FRUIT JUICE SEGMENT POISED FOR 30% GROWTH

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The branded fruit juice market in India is estimated to be worth Rs 500 crores

organized fruit beverage market (nectors, drinks and juices combined) and the segment

is growing at about 30% per annum. Big players like Dabur, Pepsi, Godrej and Parle

Agro are already in the market and in view of the swift growth in the market, newcomers

like Surya Foods and Agro, Mother Dairy, Ladakh Foods, Pioma Industries have come

into the market with new product in recent years.

Primary food processing is a major industry with a highly fragmented structure that

includes hundreds of thousands of rice-mills and hullers, flour mills, pulse mills, and oil

seed mills, several thousands of bakeries, traditional food unites and fruits, vegetable

and spice processing unites in the unorganized sector. In comparison, the organized

sector is relatively small, with around 516 flour mills, 568 fish processing unites, 5293

fruit and vegetable units, 171 meat processing units and numerous dairy processing

units at state and district level.

In India is almost equally divided between the organized and unorganized sectors,

with the organized sector holding 48% of the share. While products like juices and pilp

concentrates are largely manufactured by the organized sector, the unorganized sector

in foothold is in the traditional areas of processed items like pickles, sauces and

squashes. By size, pickles from the strongest category.

No doubt Dabur Real Fruit Juice is the market leader followed by Pepsi’s Tropicana.

The two major fruit juice in India, Tropicana and Real are going all out to tease Indian

taste buds with ethnic flavours. Godrej industries Food division has introduced fruit

juices under the Xs brand, which earlier only consists of only nectars. Parle Agro’s

Frooti and N-Joi too are doing well in the market. Delhi-NCR based Surya Foods and

Agro Ltd. Manufacturers of Priya Gold Biscuits has forayed into the juice segment.

Mother dairy has recently launched the Safal brand of juices. Safal is currently available

in orange, mixed fruit, grape and an orange-apple combination. Ladakh Foods makers

of the Leh Berry seabuckthorn berry drink, has now launched an apple-peach

combination juice and a mixed fruit variant. Ahmedabad-based Pioma Industries,

makers of Rasna brand of soft drink concentrates, test market with a diluted mango

juice in Andhra Pradesh recently.

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(d). THE GROWTH FRUIT JUICE MARKET

This chance encounter with the wonder plant seabuckthorn was the reason Ladakh

Food was set up as a separate company in 2002 to manufacture and sell seabuckthorn

juice as LehBerry. Ladakh Foods today claims to be one of the fastest growing fruit juice

companies in a fiercely competitive environment where big names such as Dabur and

Pepsi already hold substantial market shares. Even when the fruit juice/ nectar market

is projected to grow at scorching pace of 40%, a Tetra Pak study has found that a

whopping 86% of the juice market is still lying untapped.

Perhaps one of the main reason why milk major Mother Dairy announced it is jumping

on to the bandwagon of fruit juice. The company has launched packaged fruit juices

under its flagship brand, safal. Starting from Delhi, the product is scheduled for

launched on a nationwide scale in the months to come.

Pricing is one of the major worries. Price is a barrier to this category because when you

give fresh juice, packaging becomes critical. So, what the industry is now trying to do is

offer different packaging to suit different price point while simultaneously working on

ways to offer better quality and improved taste. Pricing is also the downfall of fruit juice

importers, which distributes the Australian Brand Berri in the South, “It is difficult to

make inroads into the middle class as it finds the prices prohibitive. Sales tax on

imported products is not uniform across the States.

Taking advantage of the health consciousness pervading the market, Adluri Foods has

introduced cranberry juice (something that the local brands also have done) and is

testing a mixed vegetable juice and cocktail of apple, carrot and orange in the market.

Pepsi recently launched Tropicana Tropics Mango Nectar, which made entirely from

mangoes sourced from within India, as against other flavors for which sourcing has to

be done from other countries. The introduction of Tropics Mango Nectar will be followed

by Tropics Litchi and Tropics Guava. India is now among the top teen markets for

Tropicana worldwide. Significantly India is now an approved source for mango pulp

within the Tropicana worldwide system, and can soon emerge as a major sourcing base

for other exotic fruits for Tropicana’s international market. Which means that if the fruit

juice producers work on future development of backward linkages, the pricing issue

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plaguing this industry can be better tackled. Besides, the industry has already begun to

offer packaging solutions to address different price points like a 125ml pack of fruit drink

Maaza from Coca-Cola India at just Rs 5 and 500 ml Tropicana blend for Rs 25.

With the people turning more health conscious, the non carbonated beverage segment

has become one of the fastest growing and most exciting businesses at the moment.

For some time now, manufacturers have experimented with some of the formulation and

taste issues, offering the consumers better tasting, more healthful alternatives. Evolving

from drinks containing a hint of herbs or vitamins, beverages have become an important

delivery vehicle for efficacious amount of nutritional ingredients. Beverages 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-calories drinks, in particular organic and

fruit juice varieties.

The Rs 500 crore non-carbonated beverage market in the country is composed of fruit

drinks, nectar and juices. While the Fruti drink segment is estimated at Rs 250-300crore

(branded and packed), 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,and branded fruit juices from Surya Foods (Fresh gold)among others.

The Rs 1,100 crore health food drinks (HFD) market, classified into two categories of

white and brown segments, has remained stagnant for the last several years despite

GSKCH (Glaxo Smith Kline Consumer Healthcare) and Cadbury’s attempts to activate

the category.

Dabur’s Real Fruit Juice in 9 Flavors

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 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 its consumers the largest range of 9 juices that

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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

favorite flavors of mango and apple enriched with calcium. Real Active, 100% fruit juice

with no added sugar, gives the goodness of fruit without adding extra calories. Today it

is available in orange, apple, and orange-carrot variants. Real Active orange carrot

juice, India’s fist packaged vegetable juice, is a combination of juicy orange and sweet

carrots.

Dabur Food producers around 50 million liters of juice annually through its state-of-the-

art 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

tons of fruit per day, it has the capacity to produce 192 tons of pulp/concentrate. The

plant procures fruit worth Rs 6 crore from West Bengal, North-East, Bihar, Uttar

Pradesh, Maharastra, and Andhra Pradesh. It has the highest capacity utilization by

processing pineapple, litchi, guava, mango and grape round the year.

Gogrej Xs Fruit Juice is packed with extra tang and extra fun.

Xs range of fruit nectar has more fruit making it thick and tasty. Also the vitamins and

carbohydrates present in it provide extra energy for fit and healthy living. Available in

orange, litchi, mango, and pineapple flavors, Xs comes in tetra Pack of 200 ml and

1000ml.

Pepsi’s Tropicana

Pepsi’s Tropicana brand fruit juice has registered double digit growth and has outpaced

the growth off 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 flavors and a cocktail in Ruby red. They come in Tetra packs of

one liter and PET bottles of 500 ml and one liter.

(e). FRUIT JUICES GO LOCAL

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The two major fruit juice makers in India Tropicana and Dabur are going all out to tease

Indian taste buds with ethnic flavors. PepsiCo terms these as flavors that are more

relevant to Indians.

For Tropicana India is providing to be a good investment as according to top officials in

the company, “India is among Tropicana’s top ten markets which is continuously moving

up having registered a stong double digit growth last year”. But they did not reveal any

number.

The company wants to ensure that the strong growth continues and also that the market

expands further. To this end Tropicana has launched a sub-brand Tropicana Tropics

and is introducing new flavors mango nectar, guava pulp and litchi juice under this

brand. It may be recalled that Pepsi had launched mango and litchi flavor earlier under

its fruit drink brand ‘Slice’ in returnable glass bottles.

The new variant are expected to come for around Rs 50 per liter as these come under

the category of ‘less than 20 % fruit pulp’ making them less pricy than Tropicana fruit

juices all of which retail at above Rs 70 per liter. Tropicana juices have 80 percent fruit

pulp content.

At present Tropicana have about seven flavors in the market – apple, pineapple,

orange, apple orange, grape and mix fruit. Tropicana is also looking at making India the

sourcing hub for certain varieties of fruits mainly mango. Pepsi is already exporting

nearly 20,000 tons of mango pulp and concentrate predominantly to west Asia and

Europe from India. The company is now working on building the same capacities for

other fruits like guava, pineapple, papaya pulp, grapes, and pomegranate. PepsiCo

teamed up with Punjab, which is expected to start producing results very soon. The

company is now looking for a similar deal with pineapple farmers in Kerala. According to

PepsiCo India spokesperson, the company has begun trials of pineapples imported

from Thailand and the Philippines in Kerala. At present the company sources organic

juice concentrates from Brazil but through the ongoing project, it is trying to develop a

large grower base, which can produce high juice yielding oranges to match its

requirements. “India produces 47 million tons of fruits which provides us as exciting

export opportunity within the Asia Pacific region”.

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Dabur Foods is also going local with a vengeance with its fruit juices. It is also aiming to

expand its market by introducing juices with a lower price tag. The company has

launched a new brand ‘Coolers’ in four variants – green mango, pomegranate, jamun,

and water melon with one liter of Cooler priced at Rs 50. Coolers like Tropicana Tropics

also contain only 20 % of fruit pulp against over 80% of Real variants. Dabur is also

aiming at expanding its consumer base. Dabur’s Real brand of fruit juices has proved

very successful contributing as much as 85% to the company’s Rs 85 crore turnover

last fiscal. According to the company Coolers has been launched of Rs 12 crore, into

research into consumer needs and development of processing capabilities and

parameters on the other.

(f). FACTOR AFFECTING DEMAND

A. POPULATION

Population growth in India is currently 2 per cent per year and varies from state to state.

The states with the highest per caput fruit consumption are usually those with lower

population growth rates. According to official statistics, population growth is expected to

decline to 1.5 % per year by 2011 when the total population of India is expected to 1.2

billion. Significant potential exists to expand fruit consumption in rural areas; states with

currently low per capita consumption are increasingly evident in urban areas, for

virtually all income groups with the higher income levels showing the highest per-capita

consumption rates.

B. INCOME AND PRICES

THE Indian economy has achieved significant growth over the past 20 years. Real

annual GDP growth rates have averaged 4.7 per cent over a period, despite the Asian

economy crisis and slow industrial growth in past five years. Real per caput income

levels increased 3.4 per cent per year from 1981 to 1998, with household expenditure

for fruits and vegetables estimated to have increased 5 per cent per year over the same

period. Annual per caput fruit consumption also increased from 25 Kgs in 1981 to 31

Kgs in 1998.

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There is a significant positive relationship between income and fruit consumption. The

consumption of Tropical and other fruits is highly related to income levels. Data from the

Indian Agriculture Research Institute indicate that the richest income group consumes

six times more fruit than the lowest income groups, in both rural and urban areas, with

per caput consumption in urban areas almost twice that of rural areas. Or rural areas,

the overall weighted average of the income elasticity of fruit demand for the highest

income group was estimated at 0.283 compared to 0.826 for the lowest income levels.

Similarly for urban areas, the income elasticites were 0.293 and 0.782 respectively.

Thus, the highest the income the less the responsive is fruit consumption to changes in

income levels. Given this relationship between income and demand, lower income

groups are likely to account for most of the future growth of the market in India, although

high income groups may increasingly substitute tropical fruit for other fresh fruits as fruit

consumption in these groups approaches saturation.

Prices of fruit have increased more than the General Price Index with total fruit

consumption generally highly sensitive to price changes, as discussed above. A

substantial price differential exit between wholesale and retail prices as shown by table

10 primarily due to the margins captured by intermediate buyers and sellers, perish

ability of product, and long distances between wholesale and retail markets. High retail

prices for fresh tropical fruit are one of the primary constraints to increasing

consumption, particularly among middle to low income households.

C. CONSUMPTION HABITS AND PREFERENCES

Consumers in India have become increasingly aware of the positive health aspects of

fruit consumption, particularly in urban areas. A mre diversified diet and interest in

healthier eating has led to increased consumption of all fruits. Prices also play an

important role in consumer preferences for individual fruits, with tropical fruit prices

typically lower than for temperate fruit. Temperate fruits tend to be consumed by the

higher income groups; while tropical fruit consumption is more wide spread. Large

quantities of fresh unripe mangoes are utilized in household preparation of pickles and

chutneys. The market for minor tropical fruits, such as passion fruit, carambola and

avocado is expected to rapidly increase over the near to mid-term, with consumption

concentrated in higher income groups at the present time.

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D. PROMOTIONAL ACTIVITIES

Few national or regional promotional activities, either commercial or state-sponsored,

have been developed to encourage domestic consumption of tropical or other fruits in

past years. However, nutritional education programmes by the government of India

have resulted in rising demand for higher quality fruit, as well as increased preferences

for more varied diets (including more fruit consumption). A number of large agro-

processing industries have initiated promotional programmes for processed fruit and

juice products in recent years, utilizing mass media and in-store promotions to enhance

brand recognition and encourage consumption.

E. SEASONALITY

A survey of three wholesale terminal markets in October 1999 revealed large variations

in price due to seasonality. Furthermore, despite some efforts to better manage

surpluses due to seasonality, an estimated 25 % of total fruit production goes to waste

during post- harvest handling, according to National Horticulture Board of the Ministry of

Agriculture for India. Although the Government of India has taken steps to improve the

overall conditions of the fruit industry, future growth is constrained due to inadequate

refrigeration and cooling facilities, remote market access and export infrastructure not

meeting the demand requirements for export of fresh fruits.

(g). CONSUMERS PURCHASING BEHAVIOUR

The availability of consumer food products in India has grown significantly since the

economic reforms beginning in 1991. Indian consumers can now purchase domestically

produced cheese, wine, potato chips, ketchup, soft drinks, candy bars, breakfast

cereals, ice cream, donuts, biscuits, frozen meats and vegetables, instant noodles, jams

and jellies, packaged grains and pulses, soups and some ready to eat packaged and

frozen meals. Availability of fresh produce is seasonal. Retail food sales in India were

approximately $132 billion in fiscal year 1998 and are growing at 13% per year,

according to the Ministry of Finance. The retail market for fruits and vegetables has

grown at over 20% per year in the past few years. Retail sales of subsistence foods

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such as cereals, breads, pulses, and edible oils have started declining. As incomes

have risen, there has been a shift in consumption, from subsistence to higher value

foods.

Many Indians are vegetarian by tradition; moreover, many can only afford a vegetarian

diet. Meast may be regularly consumed by less than 30 % of the Indian population, due

to its higher cost and predominance of vegetarianism and Hinduism. However, only

20% of the population is strictly vegetarian. Non vegetarians typically consume meat

only once or twice a week. Higher income consumers rely almost entirely on domestic

help for their shopping. The domestic help buys staples, vegetables, and fresh foods

from local small grocers and vendors, and other products from a variety of general

merchants. The middle class has diverse purchasing habits. Many families on the

upper end use part-time domestic help to do their shopping, often necessitated by

growing pattern of household with two working parents. Many families at the lower end

of the middle class continue to do their own shopping. The poorer segments of the

Indian population tend to buy basic staple with the first part of their paychecks, which

typically are distributed on the first few days of each month. During the month, the

poorer customers will buy whatever fresh foods and consumer goods they can afford,

often filling in at the end of the month with some additional staples purchased on credit.

In all classes, women do most of the shopping and make most of the food purchase

decision. Most consumers prefer local shops to larger supermarkets because of

proximity, personal attention and lower prices. Nearly 95% of consumers purchase fresh

fruits and vegetables from a local market or street vendor. Additionally, traditional

markets are considered the freshest source for foods.

(h). OUTER FABRIC ATTRACTS CONSUMERS

As consumer preferences in the country are shifting towards healthy, natural food

products, the demand for non-carbonated soft drink is accelerating. In the face of

increasing competition, companies are redesigning the packages that they offer their

product in. at the same time, safety, long shelf life, convenience and economic viability

are important considerations while choosing packaging options.

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What are the international trends in the packaging of fruit juices? Can any one of these

trends be replicated in India?

Internationally a variety of packaging formats are being used for packaging fruit juices.

One of the most popular is aseptic cartons. This is the most popular format in the

organized juice market in India accounting for over 60% of the market. The recent entry

of Mother Dairy into the segment points to the growing popularity of this packaging

format. More than anything else the entire aseptic processing and packaging system

ensures the availability of nutritious products in safe and hygienic formats, which are

also convenient to use. A look at any market in Asia will show how aseptic packaging is

growing in popularity.

The increase in demand for fruit juices in the recent years, and the growth in their

production is inevitably leading to an increase in demand for packaging options in India.

What are the technological innovations that have been introduced in the sector to cater

to the increasing demand?

The increased demand has led to an increase in number of size, shapes and even

printing technology innovations, besides the obvious one of ensuring improved product,

taste, quality. Manufacturers are getting more aggressive by offering new product to

consumers.

Could you elaborate on the spin-cap and cold fill technology – packaging options are

related technologies that Tetra Pack has recently introduced for packaging fruit juice.

Which companies are using these technologies and what are their benefits ? What other

technologies have been introduced recently for packaging fruit juices ? The spin cap is

a pack opening option that was introduced a couple of year ago. Used the world over, it

is currently being used only by Dabur in India. Tropicana and Mother Dairy both use the

recap option.

Cold fill technology’s biggest benefit is that it ensures microbiological safety and a

bacteria free product while keeping the nutritional values intact through the use of a

gentle heat treatment process which retains original state of the product and ensures

that the consumer gets value-for-money.

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Slim line packaging for fruit juices and its benefits over baseline packaging-

The difference between the two is the aesthetics. There is no difference in the

technology used in both these options. For both the manufacturer and retailer, slim line

packaging is easier to handle in the distribution chain. It also gives the manufacturer

more surface area for graphics.

1.4 Marketing Research

Marketing research is a form of business research and is generally divided into two

categories: consumer market research and business-to-business (B2B) market

research, which was previously known as industrial marketing research. Consumer

marketing research studies the buying habits of individual people while business-to-

business marketing research investigates the markets for products sold by one

business to another.

Consumer market research is a form of applied sociology that concentrates on

understanding the behaviours, whims and preferences, of consumers in a market-based

economy, and aims to understand the effects and comparative success of marketing

campaigns. The field of consumer marketing research as a statistical science was

pioneered by Arthur Nielsen with the founding of the ACNielsen Company in 1923.

Thus marketing research is the systematic and objective identification, collection,

analysis, and dissemination of information for the purpose of assisting management in

decision making related to the identification and solution of problems and opportunities

in marketing. The goal of marketing research is to identify and assess how changing

elements of the marketing mix impacts customer behavior.

Role of marketing research

Traditionally, marketing researchers were responsible for providing the relevant

information and marketing decisions were made by the managers. However, the roles

are changing and marketing researchers are becoming more involved in decision

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making, whereas marketing managers are becoming more involved with research. The

role of marketing research in managerial decision making is explained further using the

framework of the DECIDE model:

D —- Define the marketing problem

E —- Enumerate the controllable and uncontrollable decision factors

C —- Collect relevant information

I —- Identify the best alternative

D —- Develop and implement a marketing plan

E —- Evaluate the decision and the decision process

The DECIDE model conceptualizes managerial decision making as a series of six

steps. The decision process begins by precisely defining the problem or opportunity,

along with the objectives and constraints. Next, the possible decision factors that make

up the alternative courses of action (controllable factors) and uncertainties

(uncontrollable factors) are enumerated. Then, relevant information on the alternatives

and possible outcomes is collected. The next step is to select the best alternative based

on chosen criteria or measures of success. Then a detailed plan to implement the

alternative selected is developed and put into effect. Last, the outcome of the decision

and the decision process itself are evaluated.

TYPES OF MARKETING RESEARCH

Marketing research techniques come in many forms, including:

Ad Tracking – periodic or continuous in-market research to monitor a brand’s

performance using measures such as brand awareness, brand preference, and

product usage. (Young, 2005)

Advertising Research – used to predict copy testing or track the efficacy of

advertisements for any medium, measured by the ad’s ability to get attention,

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communicate the message, build the brand’s image, and motivate the consumer

to purchase the product or service. (Young, 2005)

Brand equity research - how favorably do consumers view the brand?

Brand association research - what do consumers associate with the brand?

Brand attribute research - what are the key traits that describe the brand

promise?

Brand name testing - what do consumers feel about the names of the products?

Commercial eye tracking research - examine advertisements, package

designs, websites, etc by analyzing visual behavior of the consumer

Concept testing - to test the acceptance of a concept by target consumers

Coolhunting - to make observations and predictions in changes of new or

existing cultural trends in areas such as fashion, music, films, television, youth

culture and lifestyle

Buyer decision processes research - to determine what motivates people to

buy and what decision-making process they use

Copy testing – predicts in-market performance of an ad before it airs by

analyzing audience levels of attention, brand linkage, motivation, entertainment,

and communication, as well as breaking down the ad’s flow of attention and flow

of emotion. (Young, p 213)

Customer satisfaction research - quantitative or qualitative studies that yields

an understanding of a customer's of satisfaction with a transaction

Demand estimation - to determine the approximate level of demand for the

product

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Distribution channel audits - to assess distributors’ and retailers’ attitudes

toward a product, brand, or company

Internet strategic intelligence - searching for customer opinions in the Internet:

chats, forums, web pages, blogs... where people express freely about their

experiences with products, becoming strong "opinion formers"

Marketing effectiveness and analytics - Building models and measuring

results to determine the effectiveness of individual marketing activities.

Mystery Consumer or Mystery shopping - An employee or representative of

the market research firm anonymously contacts a salesperson and indicates he

or she is shopping for a product. The shopper then records the entire experience.

This method is often used for quality control or for researching competitors'

products.

Positioning research - how does the target market see the brand relative to

competitors? - what does the brand stand for?

Price elasticity testing - to determine how sensitive customers are to price

changes

Sales forecasting - to determine the expected level of sales given the level of

demand. With respect to other factors like Advertising expenditure, sales

promotion etc.

Segmentation research - to determine the demographic, psychographic, and

behavioural characteristics of potential buyers

Online panel - a group of individual who accepted to respond to marketing

research online

Store audit - to measure the sales of a product or product line at a statistically

selected store sample in order to determine market share, or to determine

whether a retail store provides adequate service

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Test marketing - a small-scale product launch used to determine the likely

acceptance of the product when it is introduced into a wider market

Viral Marketing Research - refers to marketing research designed to estimate

the probability that specific communications will be transmitted throughout an

individuals Social Network. Estimates of Social Networking Potential (SNP) are

combined with estimates of selling effectiveness to estimate ROI on specific

combinations of messages and media.

All of these forms of marketing research can be classified as either problem-

identification research or as problem-solving research.

A company collects primary research by gathering original data. Secondary

research is conducted on data published previously and usually by someone

else. Secondary research costs far less than primary research, but seldom

comes in a form that exactly meets the needs of the researcher.

A similar distinction exists between exploratory research and conclusive

research. Exploratory research provides insights into and comprehension of an

issue or situation. It should draw definitive conclusions only with extreme caution.

Conclusive research draws conclusions: the results of the study can be

generalized to the whole population.

Exploratory research is conducted to explore a problem to get some basic idea

about the solution at the preliminary stages of research. It may serve as the input

to conclusive research. Exploratory research information is collected by focus

group interviews, reviewing literature or books, discussing with experts, etc. This

is unstructured and qualitative in nature. If a secondary source of data is unable

to serve the purpose, a convenience sample of small size can be collected.

Conclusive research is conducted to draw some conclusion about the problem. It

is essentially, structured and quantitative research, and the output of this

research is the input to management information systems (MIS).

35

Exploratory research is also conducted to simplify the findings of the conclusive

or descriptive research, if the findings are very hard to interpret for the marketing

managers.

The five basic method of marketing research

While there are many ways to perform market research, most businesses use one or

more of five basic methods: surveys, focus groups, personal interviews, observation,

and field trials. The type of data you need and how much money you’re willing to spend

will determine which techniques you choose for your business.

1. Surveys. With concise and straightforward questionnaires, you can analyze a sample

group that represents your target market. The larger the sample, the more reliable your

results will be.

In-person surveys are one-on-one interviews typically conducted in high-traffic

locations such as shopping malls. They allow you to present people with samples of

products, packaging, or advertising and gather immediate feedback. In-person

surveys can generate response rates of more than 90 percent, but they are costly.

With the time and labor involved, the tab for an in-person survey can run as high as

$100 per interview.

Telephone surveys are less expensive than in-person surveys, but costlier than

mail. However, due to consumer resistance to relentless telemarketing, convincing

people to participate in phone surveys has grown increasingly difficult. Telephone

surveys generally yield response rates of 50 to 60 percent.

Mail surveys are a relatively inexpensive way to reach a broad audience.

They're much cheaper than in-person and phone surveys, but they only generate

response rates of 3 percent to 15 percent. Despite the low return, mail surveys

remain a cost-effective choice for small businesses.

Online surveys usually generate unpredictable response rates and unreliable

data, because you have no control over the pool of respondents. But an online

survey is a simple, inexpensive way to collect anecdotal evidence and gather

customer opinions and preferences.

36

2. Focus groups. In focus groups, a moderator uses a scripted series of questions or

topics to lead a discussion among a group of people. These sessions take place at

neutral locations, usually at facilities with videotaping equipment and an observation

room with one-way mirrors. A focus group usually lasts one to two hours, and it takes at

least three groups to get balanced results.

3. Personal interviews. Like focus groups, personal interviews include unstructured,

open-ended questions. They usually last for about an hour and are typically recorded.

Focus groups and personal interviews provide more subjective data than surveys. The

results are not statistically reliable, which means that they usually don't represent a

large enough segment of the population. Nevertheless, focus groups and interviews

yield valuable insights into customer attitudes and are excellent ways to uncover issues

related to new products or service development.

4. Observation. Individual responses to surveys and focus groups are sometimes at

odds with people's actual behavior. When you observe consumers in action by

videotaping them in stores, at work, or at home, you can observe how they buy or use a

product. This gives you a more accurate picture of customers' usage habits and

shopping patterns.

5. Field trials. Placing a new product in selected stores to test customer response

under real-life selling conditions can help you make product modifications, adjust prices,

or improve packaging. Small business owners should try to establish rapport with local

store owners and Web sites that can help them test their products.

Business to business market research

Business to business (B2B) research is inevitably more complicated than consumer

research. The researchers need to know what type of multi-faceted approach will

answer the objectives, since seldom is it possible to find the answers using just one

method. Finding the right respondents is crucial in B2B research since they are often

busy, and may not want to participate. Encouraging them to “open up” is yet another

skill required of the B2B researcher. Last, but not least, most business research leads to

strategic decisions and this means that the business researcher must have expertise in

37

developing strategies that are strongly rooted in the research findings and acceptable to

the client.

There are four key factors that make B2B market research special and different to

consumer markets.

The decision making unit is far more complex in B2B markets than in consumer

markets

B2B products and their applications are more complex than consumer products

B2B marketers address a much smaller number of customers who are very much

larger in their consumption of products than is the case in consumer markets

Personal relationships are of critical importance in B2B markets.

International Marketing Research

International Marketing Research follows the same path as domestic research, but

there are a few more problems that may arise. Customers in international markets may

have very different customs, cultures, and expectations from the same company. In this

case, secondary information must be collected from each separate country and then

combined, or compared. This is time consuming and can be confusing. International

Marketing Research relies more on primary data rather than secondary information.

Gathering the primary data can be hindered by language, literacy and access to

technology.

38

2. RESEARCH METHODOLOGY

39

The research methodology based on the primary and secondary data both. Secondary

data are collected from different secondary sources of information.

Primary data were collected by me at different places of Indirapuram (Ghaziabad) and

Noida. I prepared a questionnaire which consisted of 9 questions and a suggestion

space at the below regarding the FRESH GOLD juice. I visited around 125 people at

different places to get their feedback about the product. Basically I tried to know how

many people were there who even know about this product because most of them were

unaware of this product. During the survey I visited food bazaar (shipra mall), food

bazaar (aditya city center) and shipra market, all the places at indirapuram only,

because the store manager of food bazaar didn’t allow me to take the feedback of

people inside the premise of food bazaar so I took all the feedbacks from the people

who are coming out of the food bazaar at outside of the shop. After visiting these areas I

visited my college campus (ims noida) and Haldirams Product Pvt. Ltd.(sec-

63,noida) and got the feedbacks from their employees. Through this I got all the filled

form and consumers feedback.

Then I started visiting to the retailers of Indirapuram only. I visited around 20 retail

shops to get their feedbacks, because almost all the shopkeepers have denied to fill any

kind of form so I got their views only by the conversation. They were having so much

complains regarding the supply and demand.

It gives a clear idea regarding the approach of the study to understand the buying

behavior of the consumers for the fruit juices. The source of information of past

consumer behavior for the fruit juices and the present consumer buying behavior

compares the differences among the acceptance of product. The recent trends of

market also pay emphasis towards the consumer preference. The understanding the

fruit juice scenario of India is a important study to make a conclusion regarding the

40

growth of fruit juices in the market, acceptance of particular brand by the people, past

draw backs made by the producers and recommendations by the consumers.

The review of theoretical concepts which are the research based view, core

competence, sustainable competitive advantage concept and the cost leader ship

strategy. The theoretical concepts of demand in this study show the demand

determination process of a particular product prevailing in the market with high market

share.

Source of secondary data are the books, magazines, internet, television, news papers.

There is no particular or specific book where the complete information about consumer

behavior for fruit juices is available. In this case the information from different books is

collector and assimilated according to the study objective. The magazines like frontline,

business world, Sunday times, Outlook provideds lot of information for it. Television is

another important source of information for this project from which recent data are

collected for study. The channels like Star News, Aaj Tak , NDTV has the importance

for providing the market share data of the products considered in the study. This is the

current source of information in once hand as a hard copy. The news papers (especially

Bussiness Newspapers) provided the desired information. Like Economic Times and

Business Standard etc. these papers are so important that sometimes they play their

role both as secondary as well as Primary source of data (because sometimes the

current information that is available through these papers are not even uploaded on

Internet also.)

Developing strategy based on the customer feedback i.e. collection of primary data by

considering a definite sample size considered is the local area (Indirapuram). The data

which are being collected from the consumer during the primary analysis are separated

according to their specific weightage. From the question five comparative questions are

considered for comparison. The open ended questions and the closed ended questions

used in the questioner for customer feedback have different weightage and are

separated to make a unique analysis. The main influencing questions are again

analyzed to get clear result from the analysis. The different companies are considered

for realizing the perfect completion among them so that perfect interpretation can be

made upon them. For study the fruit juice brands which are considered are Real,

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Tropicana, Saint, Fresh gold and other competitors are also considered for the

secondary study but not encountered in the main study.

For detailed comparison according to different parameters like availability, price, quality,

flavor, customer feedback, packaging the questioner are sorted out and the ranking are

calculated. The ranking is made like first, second and third. The First rank the highest

three points, the second rank has two points and the third rank has one point. According

to the rank the numbers of persons are calculated who have given the rank according to

the different parameters. The points obtained from the number of the persons gives rise

to intermediate point. The summation of all points is a result of total point which is the

main criteria for comparison.

The techniques are used different for secondary analysis as well as per primary

analysis. In secondary analysis the relevant data are obtained from news papers,

magazines, television, and websites. For primary data collection the techniques used

are questioner technique and personnel interview. The data collection from the primary

source is analyzed by graphical methods. The questioners are separated according to

different parameters and different points are assigned for them for perfect weightage to

place in the comparative graphs. The pie chart, bar graph and line graph are used in

this study to compare different parameters.

After analyzing all my data I got from the consumers, I found that the main thing is to

place the product at the shelf of retail shops, so the public see it and get aware of it. For

this we need to strengthen the supply chain.

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3. Profile Of The Organisation: “SURYA FOODS & AGRO LTD”.

43

Company Profile :

Surya Food & Agro Ltd. was incorporated in November 1992 and commenced its

commercial operations of manufacturing & selling of biscuits under brand “Priyagold”

October 1993. Over a period, they have established strong manufacturing capabilities

and have invested substantially in developing consumer preference for our products.

Their trademarks / brands “Haq Se Maango” & “Priyagold” have emerged as one of the

most powerful brands in the FMCG sector.  They are committed to invest in brands,

manufacturing capabilities, deliverables and distribution strength.

They have three plants located in Greater Noida, Lucknow & Surat.  They also

outsource some of their requirements to another plant located in Hyderabad. Their

capacities have reached 1,50,000 MT p.a., which along with strong brand building

and distribution capabilities have enabled them to command a sizable market share

in the biscuit market despite competition from well-established players in the industry.

After establishing their foothold in biscuit industry, they continued to adopt strategy to

identify and commercialize profitable growth opportunities by leveraging established

brand and distribution network.  Following this strategy, they diversified into

manufacturing of “fruit juices” through their wholly owned subsidiary “Surya

Fresh Foods Ltd.” in January 2006. The manufacturing facility is located at Greater

Noida, U.P. They have consciously invested in creating markets for fruit juices and

have established brands such as “Fresh Gold” & “Treat”.

Both the brands are also well established and have penetrated into the fruit juice market

aggressively by commanding considerable market share. They have also forayed into the

aerated fruit drink segment with the launch of “Fresh Fizzy.”

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They are also aggressively marketing their products in institutional category. Presently their

products viz. biscuits and fruit juices are supplied to Airlines, Hotels, Railways, Canteens Stores

Department (CSD) and organized retail outlets.

They are also diversifying into manufacturing of “chocolate and toffee & candy” through our

wholly owned subsidiary “Surya Processed Food Pvt. Ltd.” at Haridwar, Uttarakhand, where

various fiscal benefits are available.

Their strategy of strengthening the brands especially the umbrella brand “Priyagold” has resulted

in creating immense brand recall value.  They are continuing with our effort of strengthening the

brand with a scientific approach, which will result in growth of customer base, price premium,

consumer loyalty which is expected to result in increased earning and ultimately enhancing

enterprise value of our company.

Thus the company’s manifesto is to build on the present strength created over the

years and diversify into products and geographic portfolio. We aim at achieving

profitable growth by penetrating into the consumption market to enhance market

share by constantly innovating on product profile, investing in infrastructure

thereby accelerating the top line growth to enhance the market share.

Delhi NCR-based Surya Foods and Agro Ltd, manufacturers of Priyagold biscuits, has

forayed into the juices segment. It has set up a state-of-the-art 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.

Branded `Freshgold', the one-litre juice in cartons is available in supermarkets and malls in and

around Delhi for Rs 60. Speaking to Business Line, Mr B.P. Agarwal, Chairman, Surya Foods and

Agro Ltd, said, "Though the juices are currently available only in the northern markets”

The Rs 300-crore turnover company is also setting up a biscuit plan to launch it in the

south by the next month. We are also working on a specific distribution network for the same."

manufacturing plant in Uttaranchal to avail of the tax incentives. 

"We are investing around Rs 20 crore on the plant with a capacity of 100 tonnes per day, which

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would be operational by December 2006," Mr Agarwal said.

The company has been keeping a low profile with regard to advertising and promotions after its

not-so-good experience with the `Priyagold khaao or khelo' contest. According to Mr Agarwal,

"The retailers did not give out the coupons to the end-consumers. Consequently, we had to

withdraw the scheme from the market." However, he said that the company has earmarked

around Rs 3 crore for promoting the juices. While tele-commercials have already begun on

IndiaTV, the company is hopeful of running them on all other channels by the next fortnight.

it is also in the process of sprucing up its exports operations. Currently it exports its biscuits to

countries such as Dubai and Nepal.

According to Mr Agarwal, "The high level of taxation in the domestic market, which is a major

concern, is one of the reasons why we are looking to increase export volumes."

Explaining further, he pointed out that high input costs and taxes are affecting margins and profits.

As fierce competition from other players is preventing the company from increasing prices, he

said, "High taxes are even forcing manufacturing units to close down. In fact, we have already had

to shut down two out of six company's plants."

While speaking on the company's performance, he said, "We face immense competition not just

from competitors in organised retail but also from the unorganised market which holds almost 40%

of the market share and has the benefit of not being subject to any taxes." The government needs

to look into the matter before the situation worsens, he added.

Quality Assurance

Surya Foods & Agro. (P) Limited ensures that the highest levels of quality are maintained

throughout the manufacturing process. Each step of our processes undergoes strict checks at

various levels, being supervised by our quality assurance team. All the products are

manufactured under 100% clean and hygienic conditions.

Our speciality lies in our ability to deliver pure and natural juices in a wide variety of flavours

with no artificial ingredients and are completely safe for consumption. All the products are

packed in air-tight packaging materials to restore their freshness. The date of manufacturing

as well as that of expiry are clearly mentioned on the pack so as to avoid any confusion. Only

approved products that meet the stringent standards laid down by the relevant food

46

authorities are sent for dispatch.

Their Processes

Our manufacturing processes are conducted under the most hygienic conditions, and we

have a clean manufacturing facility which is well equipped with a host of advanced and

sophisticated machinery for our purposes. Many of our machines like Tetra Therm Aseptic

Flex, the latest sterilizers, are exclusively imported from countries like Sweden.

Our versatile packaging department makes use of the most standardized packaging materials

to give our product an attractive appeal as well as  to keep the contents intact and safe. All

the products are stored in a capacious warehouse with cold storage facility, thereby enabling

us to meet all forms of market demands in the most efficient manner.

Their Strengths

Well developed infrastructure for efficient processing

A team of pro-active and qualified staff having years of experience

A wide variety of products in different flavours with high nutritional value

Quality checks in accordance with the national and international standards

Constant research and innovation to produce better products.

Karishma kapoor - Brand Ambassador for Priyagold

Merely before couple of weeks, we had alluring missy Deepika Padukone signing for BSNL as

brand ambassador. Fine! We have one more hot celebrity getting roped in for brand

ambassadorship, but not for BSNL. Karishma Kapoor has been opted as new brand

ambassador for 'Surya Food & Agro Ltd'; a U.P. based Food Company at Noida, known for

Priyagold biscuits. Sooner, we will espy the pulchritudinous actress recommending three

products from the Priyagold stable – Butter bite, Butter bite Badam Pesta and Marie lite.

Perhaps, this is the first time Priyagold has preferred for celebrity endorsement. And earlier, it

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was TV personality Priya Tendulkar who plumped for these products a decade ago. Karishma

has spelled that it's because of her personal preference for Priyagold products, she signed for

brand ambassadorship.

Karishma Kapoor is the new brand ambassador of the Noida; U.P. based fast emerging food

company “Surya Food & Agro Ltd”, known for Priyagold biscuits. This is the first time

Priyagold has opted for celebrity endorsement since the TV personality Priya Tendulkar

endorsed the biscuit for Indians ten years back. For Karishma the product fits into her life

seamlessly. She is a celebrity housewife, mother and concerned of the quality of what she

and her family consumes.

Karishma will soon be seen recommending three products from the Priyagold stable – Butter

bite, Butter bite badam pesta and Marie lite. The advertisements created are straight forward

brand endorsement with no complicated storyline or special effects in the visual. The

message to the viewers is clear.

“We had been looking for a celebrity who can easily be associated with our product. In

Karishma Kapoor we got that. “Karishma being a modern day housewife and a celebrity

mother is always concerned about her kid’s & family’s health in today’s hectic life, said

Shekhar Agarwal, Director of Surya Food.

“Priyagold biscuits are favorites in kids. I too have grown up eating these biscuits and like the

taste immensely. In fact I agreed to endorse the product it is because of my personal

preference for Priyagold products”. Said Karishma Kapoor

The reason why the company has opted to keep the message direct and simple is the fact

that such endorsements are easy to recall. Unlike other celebrity endorsements of similar

products where film stars have been seen promoting biscuits, at the end of the day viewers

fail to recall the product. Also Shekhar feels that biscuits are commodities and need to be

promoted as such.

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Chocolate news

Surya Food & Agro is going to introduce chocolates and wafers in November as part of its

plan to extend the product portfolio.

Surya Food & Agro is a leading biscuit manufacturer of the `Priyagold` brand. This is a Noida

based company and has a turnover of Rs 400 crore. Now, the company is expecting its new

products to register revenue of Rs 10 crore by Mar 31.

Shekhar Agarwal, the director of the company said, "Our chocolate and wafers will be

introduced in the market when our Haridwar plant commences operations in November."

He added, "Initially, our target is the north Indian market where Priyagold has a stronghold."

He said that about 10 variants of chocolates and wafers would be launched there.

Agarwal informed that the company has invested Rs 30 crore in the project for installing

modern machineries for the 10 tons per day capacity plant at Haridwar. The chocolates and

wafers would be sold under `Priyagold` brand with a separate sub-brand for each Variant, he

said.

But, Agarwal denied to disclose the names of variants, but said they would be placed near the

existing names of big players like Nestle and Cadbury. The company will keep the price of

their chocolates same as the leading companies.

Agarwal added, "Our products will be cheaper as they would have more quantity in weight."

The company would leverage on the existing network of Priyagold biscuits for distribution

purpose and offer more discount to retailers so that they are attracted to keep the products.

The biscuit manufacturer, which also makes juices, has a considerable market share in Delhi,

Uttar Pradesh, Haryana, Punjab and Rajasthan.

Products / Services :

We are manufacturer, suppliers and exporters of Biscuits such as :

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Butter Bite

Crack N Cheers

Nice Day

Marie Lite

Kids Cream Butter

Strawberry

Chocolate

Coconut crunch

Glucose V Extra

Magic Gold

Snacks Zig Zag

Orange

Cheez Bit

Jeera Top

Cashew

Cheese Cracker

Elaichi

Milk

Trick-or-Treat Pizza Biscuits

Southern Style biscuits such as Spices, Cheese & Bacon Bake, Cream Cheese & Jelly Bake,

Berries & Cream Bake.

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4. RESEARCH ANALYSIS

51

The primary research analysis fulfill the objectives of the study. According to the

objective the demand for the fruit juice is more but if we consider a particular product

out of the four product which we are taken into consideration are Real, Tropicana,

Freshgold and Saint.

CONSUMER AWARENESS FOR FRUIT JUICES

If we compare the consumer awareness for each brand then it is satisfactory that all

the consumers have the knowledge regarding the fruit juices available in the market.

According to the conversation during filling the questionnaire people drink fruit juice for

energy instead of getting relaxation. It is found that 78% consumer consume fruit juices

for energy. Though the caloric value of fruit juice is high it is consumed for the purpose

of getting energy. The consumer awareness for fruit juice is more among all consumers.

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Consumers get aware for fruit juices through different modes

The sources of awareness regarding the product are the T.V., News papers,

Magazines, Websites, Banners etc. It is found that the banners displayed in different

places attract their attention towards the product a lot. Out of 100%, 13% (other) of

people attracted towards the banner advertisement. Television is the most demanded

for getting awareness regarding fruit juices and their changes made time to time. 38%

consumers get the idea about fruit juices from television.

CONSUMER DEMAND FOR FRUIT JUICES

As from the analysis 85% of people use to take juices daily. Out of which most of

the people do not know about most of the brands which are available in the market, like

freshgold, leh berry, saint etc. They only know about those brands which they use in

their day to day life like Real, Tropicana etc.. The demand for fruit juices increases

because of the growing income of each individual and increase in purchasing capacity.

The change in consumption food habit has really affected the demand of fruit juices.

The brand name has a great influence towards sales. Most of the people say that Real

is the best brand and they will go for Real only, lesser people than Real want to go for

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Tropicana and subsequently the demand decreases among Fresh gold, Saint, Leh berry

and others. The various campaigns organized by the fruit juices companied have also

increased the consumption demand for fruit juices. It is obtained from the primary

research that 53% of consumers prefer Real juice as compared to Tropicana, Leh

Berry, Fresh gold, Saint. It is observed that Fresh gold has lesser consumer attracted

towards it shows the lesser demand by consumers according to various parameters

which are explained in the other analysis as followed. Leh Berry and Tropicana has the

same demand in the market because of their retail price in the market for which the

consumers buy it. The promotional factor which has great importance towards the

demand of the fruit juices.

CONSUMERS DEMOGRAPHIC PROFILE AND PREFERENCE FOR FRUIT

JUICES

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From the analysis it is found that the fruit juices consumption depends upon

different age groups. During the survey I found that 43% of the consumers of age group

20-30 likes to consume fruit juice. Subsequently 28% consumers from the age group

30-40, 14% people from the age group 40-50, 7% consumers between the age group

50-60, 3% consumers were above the age of 60 where as only 5% consumers were

below the age of 20.

One more thing I got from the analysis of my questionnaire that out of 100% only

62% people like packed juices where as 38% people like juices which is freshly

prepared in front of their eyes by local juice wala. They believe that the packed juices

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contains many extraneous substances or ingredients and loose juices are fresh and

contains not any extraneous ingredients or preservatives so that the loose juices are

more beneficial than the packed one. They don’t like the taste of packed juices because

it gives the taste like a cough syrups as they said.

CONSUMER’S PREFERRED BRAND

I conducted a survey among 120 people to know about their preferences, that at

which brand they rely the most. The survey was conducted among five brands

Freshgold, Real, Tropicana, Xs and Saint. Among all these brands most of the people

said that they like Real, Lesser said Tropicana and a very few said Fresh gold and other

brands. As a result of the survey 46% people like Real where as 33% like Tropicana, no

one said about godrej’s Xs and only 5% people said about fresh gold. 16% people like

other brands(saint, leh berry and other local brands) available in the market. Most of the

people whom I met they don’t even know about fresh gold, they came to know about

fresh gold through the questionnaire only.

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CONSUMER’S PREFERENCE FOR PACKAGING

As per the graph above shown the packaging is divided into four types, i.e. tetra

pack, plastic bottle, can and glass bottle. From the survey it was analyzed that 70%

of people like tetra pack, 18% of consumer like plastic bottle, 9% of consumer like

can and 3%of people like to have juice is glass bottles.

AWARENESS REGARDING THE FRESH GOLD

During the survey when I asked people about fresh gold, most of them have replied

they don’t know about this product available in the market. After completion of

survey when I analysed the primary data collected I got that around 70% people are

there who don’t even heard about fresh gold. Only 30% people were about its

existence. The people who know about this or who have tasted it earlier praised it

very much.

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COMPETITORS MARKET SHARE

The competitors market analyzed from the acceptance of particular product or it can

be understood like that-how many customers retained by each fruit juice brand. It is

studied that real has captured the maximum number of customer in the market.

From the figure below- the customer retention can be known.

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From the above graph the number of customers retained by each brand can be

known, tropicana has retaines 33% customers, real has retained the most 53%

customers, fresh gold has retained 6% where as saint has 3% and other brands

(leh berry, Xs and many more combinedly ) has retained 5% customers.

Most popular flavour

A survey is conducted among 120 people just to know about their taste preference.

In the questionnaire a question was there about the flavour which they generally

have. I asked among 6 flavours orange, apple, pineapple, tomato, mixed fruit and

other flavours. At the time of analysis I got that 38% people asked about orange

flavour only, which means orange flavour is most popular among other juice

flavours. Orange got 38%, apple got 14%, pineapple got 9%, tomato got 3%, mixed

fruit got 34% and there were people who don’t like any of these, they preferred to

have other flavours.

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PURCHASING CAPACITY OF CONSUMER

Although the purchasing capacity of the consumer is increasing on day to day basis in

present sceanario but even though they don’t want to spend more on it. A question was

asked to them that about the price of one litre of juice. Most of the people said

maximum rs 60 for one litre of juice. Around 43% people said that its price should be

upto rs 60, where as 14% said 61-65, 19% were in favour of 66-70, 17% favoured 71-75

and 7% said that they can pay more than rs 75 for one litre of juice.

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JUICE VERITY

Is the survey a question was asked about the verity of juice, means what kind of juice

they like most with sugar or without sugar. Some of the people said they like juices

without sugar but around 70% people like juices with sugar, means 30% people are

there who don’t like juices with sugar. By keeping this thing in mind Real has launched

“Real active”, this is the product which contains no sugar. This product is specially for

those people who are diabetic patient or calory concious or those who don’t like juice

with sugar. Through real active dabur has targeted that 30% consumers.

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CONSUMER CONCERNS

Through a question I tried to know what is the most important thing in a juice for the

people. Means what matters them the most among taste, quality and price. 65% people

said about the quality of the juice, that matters them the most, 30% of them preferred

taste and 5% said about the price, means price effects them the most.

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5. CONCLUSION

63

The objective of the study is to analyse the consumer behavior with respect to Fresh

Gold by considering five fruit juice brands in the market. Tropicana, Real, Saint,

Freshgold and Xs the five brands which are taken into consideration for the study.

These five brands are identical with respect to different characteristics. The thorough

study is based on the consumer behavior analysis which serves a great idea regarding

consumer perception when they go for a particular brand to fulfill their needs. In order to

satisfy themselves consumer perceive many things before buying which are analysed in

this paper and result is obtained.

The whole study satisfies the objective of the study. The market share is studied for

each brand specially freshgolg by taking into consideration for the product they like to

buy or they are buying. It is found that real has retained maximum number of customers

where as other brands have retained lesser number of consumers. Freshgold has a

very few number of consumers, about 5-6% of consumers like to have freshgold where

as Real and Tropicana have 53 and 33% consumers in the market.

Freshgold has less market shares or we can say a very few people want to buy

it, there are several reasons behind it like lack of awareness, lack of promotion,

people don’t aware of it, lack of availability, consumer’s affection towards Real

and Tropicana or other brands because of taste, flavor, quality etc. One of the

main reason can be the retailers don’t want to sell it because of less demand and

improper supply chain management. Most of the retailers don’t want to sell it but

those who want to sell it don’t get the products from the dealer at right time. So

its sales don’t increase even if the demand of the juice is higher. From the month

of April to September sale of juices increases due to summers, juice market

expands during this time only.

So the fresh gold can change their strategies for retaining more numbers of

consumers for satisfying their objectives. Fresh gold can take more number of

consumers if they take some initiatives for those parameters in which it is behind of

them. The parameters which are considered in this study really affect the consumer

buying behavior those are availability, quality, price, quantity, customer feedback and

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packaging. In some cases Tropicana is good as compared to other brands but

simultaneously it is not good if we consider some other parameters. Real has gained

maximum number of points in case of availability, quality, flavor, packaging. Real has

got lesser points for price because as per consumers the price is not satisfying them

where as the other brands are having satisfactory price. Consumer awareness is also

an important factor for the producers from where they know about the consumer interest

regarding their products. Consumer perception generally changes from time to time

because of the changes in brands in promotional activities. These are obtained from the

study that the awareness increases the market share of the product.

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6. RECOMMENDATIONS

66

This study gives a clear idea regarding consumer behavior while purchasing. The

strategy for the products can be changed by comparing the different factors that has

obtained from the study. Real has obtained the highest market share by keeping in

consideration the parameters like consumer feedback, packaging, delivery mode,

quantity and availability. Tropicana is very near in every aspect to real and by changing

the strategy like availability and promotional activities it can cross the market share of

Real very easily. The price of Tropicana is affordable and has more number of

customers whose profession is student and falls between the age 20-30 like it.

Just like these brands fresh gold should also come forward for aggressive

marketing. As we have already seen from the study most of the people don’t even know

about fresh gold, they don’t aware of it so there should be more and more promotional

activities. Promotion should be done through ATL and BTL, both the processes. For

ATL promotion they should arrange more and more advertisements on different T.V.

channels. Especially at prime time so that more and more people can be aware of it.

Other than the televisions they should also give the promotional advertisements on

radios, newspapers and different magazines, so that a large number of consumer can

be made aware of it. At time to time they should give a promotional offers on it like

“save rs 20 at the purchasing of two packs of juices” or “get two packs of juices @ 100

only” and more like this. So the people who generally visited to the departmental stores

like Big Bazaar or Spencer, can get the offer easily. They should also provide these

types of offers to the retailers so the people who don’t visit malls can get the offers.

Apart from these activities company should also organize the BTL (Below The Line)

promotions to make more and more awareness. For BTL promotions, company should

choose some crowded areas is every territory and organize camps there. Company

employee will meet every people roaming in that particular place and give a sample of

juice to taste and note down their reactions. What will be the result of it that the persons

who doesn’t even taste but see they will become aware of it. Through this process we

can also watch that how much new customer we made in that particular location.

Along with that we shall try to convince the retailers also to keep the product in their

shops. For this company should give them some special offers and gifts. As we know

retailers are the main source of BTL advertisement so firstly we need to convince

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retailers and place the product at every retail shops at eye level of the customer

because “eye level is buy level“. Until we don’t place the product at the shop the sell

can’t be increase and all the advertisement will become worthless.

So before launching a new fruit juice brand in market the parameters which have

taken into consideration must be utilized for better consumer attraction.

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7. APPENDIX

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QUESTIONNAIRE

1. How many time you take juices daily ?(a). 1 (b). 2 (c). more than 2 (d). none

2. Which juice you prefer to have ?

(a). loose (b). packed

3. At which brand would you rely ?

(a). Tropicana (pepsico) (b). real (dabur) (c). Xs (godrej) (d). saint (parle)

(e). fresh gold (priya gold) (f). any other

4. Have you heard about fresh gold ?

Yes …………. No …………..

5. Which flavour you like the most ?

(a). apple (b). orange (c). pineapple (d). tomato (e) mixed fruit (f). any other

6. Upto how much price can you pay for a liter of juice ?

(a). upto rs.- 60 (b). 61-65 (c). 66-70 (d). 71-75 (e). more than 75

7. You like juice

(a). with sugar (w/s) (b). without sugar (wo/s)

8. What matters you most

(a). taste (b). quality (c). price

9. How many points will you give to these products out of 10 points….

(a). Tropicana (pepsico)-

(b). real (dabur)-

(c). real active (dabur)-

(d). fresh gold (priya gold)-

(e). saint (parle)-

10. Any suggestion…………………………………………………………………..........................

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BIBLOGRAPHY

o Primary data collected by me only through the questionnaire and verbal

discussions

o “Principles of marketing management” by Philip kotler

o Marketing management - Wikipedia, the free encyclopedia

o www. Pricewaterhousecoopers.com

o www.researchandmarket.com

o www.fnbnews.com

o www.ibef.org (Indian brand equity foundation)

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