Case: IMPULSIVE

SELLERS

Funsip- Dump or Dare???

What went wrong with initial launch of Funsip?

Faulty distribution system

Low penetration

Low levels of promotion-an impulse product to be chosen over other impulse product what is important is:

Visibility (packaging) e.g. Mirinda cans- very attractive

Extensive Promotion

Low on resources (financial, intellectual) at that time

Should Funsip be launched again? Why or why not?

Yes

R & D costs already invested (sunk cost)

Have resources (both financial and intellectual) now

Positive market signals (expected 200% growth in the food industry)

Only effort needed- Strong distribution network (his might act as a friction)

They know their mistakes (strong probability that they won’t repeat them)

Real life example- Mirinda was re-launched in India in 1996 after its first launch in 1991 (http://www.financialexpress.com/news/pepsico-to-relaunch-enhanced-

mirinda/44309/)

(Financial View: NPV must be considered)

Contd..

Caution-

Have to introduce new flavors/ products (fruit drinks, nectar and juices, coolers ) in the same segment (coke, Mirinda, sprite etc)

Get rid of fear of failure

Current Scenario

Fruit drink segment - estimated at Rs 250-300 crore (branded and packaged)

Juice market is valued at Rs 150 crore

Existing popular brands in India-

Parle's Frooti

Godrej's Jumpin

Coca Cola's Maaza

Pepsi's Tropicana

Dabur's Real

Nastle's Milo

Soya milk from ProSoya

Branded fruit juices - Surya Foods

Current Scenario (Contd..)

Too many competitors now!!

Establishing a new brand in this competitive environment is difficult

May not launch Funsip

Thank you

“To be a success in business, be daring, be first, be

different”- Marchant