tropicana final report by group 8

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2011

IMG 5, GROUP 8 – THE SIX MARKETE

FORE SCHOOL OF MANAGEMENT

SUMITTED TO – S.K PANDEY

MARKET RESEARCH ON - TROPICANA



ContentsABOUT OUR COMPANY: PEPSICO ................................................................................................................. 4

About OUR BRAND: Tropicana ...................................................................................................................... 4

ENVIORNMENT ANALYSIS ............................................................................................................................. 4

DEMOGRAPHIC ENVIRONMENT ............................................................................................................... 4

ECONOMIC ENVIRONMENT ...................................................................................................................... 6

LEGAL ENVIRONMENT AND GOVERNMENT POLICIES .............................................................................. 7

TECHNOLOGY ENVIRONMENT .................................................................................................................. 8

SOCIO-CULTURAL ENVIRONMENT ............................................................................................................ 8

Integrated Marketing Communications Mix ................................................................................................. 9

I. PRODUCT........................................................................................................................................... 9

II. PRICE ................................................................................................................................................ 10

III. PLACE ............................................................................................................................................... 10

1. Kirana stores ................................................................................................................................... 10

2. Hypermarkets.................................................................................................................................. 10

3. Bars and Restaurants....................................................................................................................... 10

4. Hotels. ............................................................................................................................................. 10

IV. PROMOTION ................................................................................................................................... 10

1. ADVERTISING.............................................................................................................................. 10

PRINT ADVERTISEMENTS ........................................................................................................ 10

TELEVISION ADVERTISEMENTS ......................................................................................... 10

VIRAL MARKETING ............................................................................................................... 11

PACKAGING ............................................................................................................................. 11

SALES PROMOTION.................................................................................................................... 11

2. PUBLIC RELATIONS AND PUBLICITY.................................................................................... 11

3. COMMUNITY RELATIONS .................................................................................................... 11

4. DIRECT AND INTERACTIVE MARKETING ............................................................................ 12

5. WORD-OF-MOUTH MARKETING ............................................................................................. 12

6. PERSONAL SELLING .................................................................................................................. 12

SWOT ANALYSIS .......................................................................................................................................... 13

MARKET ANALYSIS ...................................................................................................................................... 13



FINANCES OF TROPICANA ........................................................................................................................... 14

Porter’s Five Force Analysis ........................................................................................................................ 16

COMPETITORS ANALYSIS ............................................................................................................................ 16

Strengths and Weakness ......................................................................................................................... 16

MAJOR MARKET PLAYERS: PROFILES AND STRATEGIES ......................................................................... 17

CONSUMER BEHAVIOUR: SURVEY ANALYSIS .............................................................................................. 19

OBJECTIVE ............................................................................................................................................... 19

INTRODUCTION ....................................................................................................................................... 19

METHODOLOGY ...................................................................................................................................... 19

OBSERVATIONS ....................................................................................................................................... 20

RESULTS AND IMPLICATIONS .................................................................................................................. 20

MARKETING STRATEGIES ............................................................................................................................ 21

ANSOFF‟S MARKET EXPANSION .................................................................................................... 22

COMPETITIVE STRATEGIES .......................................................................................................................... 22

CHOSEN CAMPAINGN: Let’s make breakfast 100% ................................................................................ 22

I. OBJECTIVES OF THE CAMPAIGN ........................................................................................... 22

II. TARGET AUDIENCE ................................................................................................................... 23

III. COMMUNICATION TOOLS USED ........................................................................................ 23

TELEVISION MEDIA ....................................................................................................................... 23

PRINT ADVERTISEMENTS ............................................................................................................ 23

PUBLIC RELATIONS ....................................................................................................................... 24

RECOMMENDATIONS ................................................................................................................................. 24

MARKETING MIX SUGGESTIONS ............................................................................................................. 25

1. PRODUCT..................................................................................................................................... 25

2. PRICE ........................................................................................................................................... 25

3. PLACE .......................................................................................................................................... 25

4. PROMOTION ............................................................................................................................... 25

REFERENCES ................................................................................................... Error! Bookmark not defined.

REFERENCES ................................................................................................................................................ 25



ABOUT THE COMPANY: PEPSICO

PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc.

PepsiCo entered India in 1989 and has grown to become the country‟s largest selling food and

Beverage Company. PepsiCo has since expanded from its namesake product Pepsi to a broader

range of food and beverage brands, the largest of which include an acquisition of Tropicana in

1998 and a merger with Quaker Oats in 2001. The group has built an expansive beverage, snack

food and exports business and to support the operations are the group‟s 42 bottling plants in

India, of which 13 are company owned and 29 are franchisee owned. PepsiCo offers the world's

largest portfolio of billion-dollar food and beverage brands like Frito-Lay, Quaker, Pepsi-Cola,

Tropicana and Gatorade.

ABOUT THE BRAND: TROPICANATropicana Products Inc. is the world's only global citrus juice business. On August 25th, 1998 it

was incorporated by PepsiCo in a big $3.3 billion acquisition which gave more strength to the

company (The PepsiCo Family). Hoping to get a bigger share of the estimated `1000 crores

Indian branded fruit juice market, in late 2008, Food and Beverages major PepsiCo relaunched

its Tropicana Premium Gold as Tropicana 100 %. It was done to highlight the brand's strength

as a complete fruit juice devoid of any artificial color, preservatives and sugar and to expand the

health brand portfolio. The juice is made of hand-picked fruits picked from the finest farms from

across the world that are squeezed within 24 hours of getting plucked. The product is available in

Apple, Mixed fruit, Orange and Grape flavors. It is available in 1 litre and 200ml packs.

ENVIORNMENT ANALYSIS

DEMOGRAPHIC ENVIRONMENT

The main demographic force that marketers monitor is population. Marketers are keenly

interested in the size and rate of population in cities, regions, and nations; age distribution and

ethnic mix; educational level; household patterns; and regional characteristics and movements.



India’s Population Growth

With about 2.4 % of the world‟s surface area, India accounts for 16.7 % of the world‟s

population. As per Census 2001, India‟s population is 1028.7 million constituting of 532.2

million males and 496.5 million females. Taking into account that Indian population has shown a

positive growth trends over the past years, India‟s projected population is 1339.8 million by the

year 2026. Of the total population, rural population constitutes 72.2% and 27.8% is urban

population. The ` 100 crore packaged fruit juice market is estimated to be growing at 20% to

25% annually, which is mainly due to the expected growth is urban population of India. There

are 300 million upper-and-middle-class consumers of processed and packaged food in the

country, and another 200 million are expected to shift by 2010.

Population Age Mix

National populations vary in their age mix. As per the Census of India 2001, 23.2% of the

population is nine years of age or less. Among people who are 10 years or above, 39.8% are less

than 25 years of age. Another 19.9% of this population belongs to the age bracket of 25 to 34

years. People who are above the age of 54 years constitute only about 14% of the population.

India is an attractive market for packaged fruit juices as unlike other countries India has quite ayoung population which form a large share of target consumers for the players in this industry.

Literacy Levels of Population

India has about 52% of the population consisting of males. Out of the total male population, 36%

are illiterate while 55% of the total female population is illiterate. Literacy levels also vary

according to age groups. It is noted that 76% of the people between the age group of 15-24 are

literate. There is a considerable decrease in literacy rate viz. 64.5% for the age group 25-24, and

stands at 35.6% for the 65-plus age group. The high literacy levels of younger members of the

society also aid the marketers as they act as consumers, and as influencers of family consumption

decisions. With the increase in literacy levels of the consumer, the demand for packaged fruit

juices is going to increase owing to the fact that consumers will become more aware of healthier

substitutes for aerated drinks.



ECONOMIC ENVIRONMENT

The available purchasing power in an economy depends on current income, prices, savings, and

debt and credit availability.

Purchasing power parity

By applying the purchasing power parity (PPP) method, India‟s GDP is estimated to be about

$3.319 trillion, making India the fourth largest economy in the world. GDP has been growing at

7.4% per annum. However, due to the large Indian population, the per capita GDP is quite low,

making India only the 128th country in the world. But the trends of its growth provide a strong

reason to invest in India. There is an increasing market for packaged juices in the country.

GDP

As per the World Bank data, the GDP of South Asia is estimated at $1.1 trillion, though this

constitutes just about 2.3% of the world‟s GDP. The South Asian economy has seen a dip in

GDP growth rate from 8.9% per annum in 2007 to about 6.3% per annum in 2009, owing to the

global economic recession. But the recovery has been faster as compared to the countries in the

East. Amongst all South Asian countries, India has 7.4% GDP growth rate. South Asia is an

emerging market for packaged fruit juices and India is an unresisting option amongst all, owing

to the rapid growth rates.

Inflation

India's annual food inflation rate cooled to single digits at 9.67% (July 2010) for the first time in

the current year, while it was hovering above 16% for most part of the last few months before

beginning to ease since mid-June. This indicates that India in particular has strong economic

fundamentals that suggest a positive climate for business growth. The control of RBI and its

policies have helped India survive and perform well even in tough times. Lower costs of

essential commodities provide high disposable income for the consumers, therefore providing a

good base for packaged juices industry.

Income distribution

Indian consumers can be classified into 5 categories:



Destitutes: annual household income of ` 16000. These are not active participants in market

exchange for a wide range of goods. Aspirant: annual household income of ` 16000-22000.

These are new entrants into the consumption systems due to increase in their income. Climbers:

annual household income between ` 22000-45000. They have a desire and willingness to buy but

have limited cash at hand. Consuming Class: Annual household income of ` 45000-215000.

These form the majority of consumers and they have money to spend. Rich: Those who have

money and own a wide range of products.

Players in packaged juices industry can segment their market and target different segments with

emphasis on price, quality, nutrition, flavours etc.

As the changes in GDP, Inflation rate, per capita income and various other factors take place

there is a huge impact on the companies in packaged juices market. For example if there is an

increase in the inflation rate then the consumption will decline. Therefore in a volatile economic

environment companies should be vigilant about these changes and take measures and strategies

accordingly.

LEGAL ENVIRONMENT AND GOVERNMENT POLICIES

It consists of laws, government agencies and pressure groups that influence and limit various

organizations and individuals. Business legislation has four main purposes: to protect companies

from unfair competition, to protect consumers from unfair business practices, to protect the

interests of society from unbridled business behavior, and to charge business with a social costs

created by their products or production processes.

There are various food laws applicable to food and related products in India:-

The Prevention of Food Adulteration Act (PFA), 1954 focuses primarily on the

establishment of regulatory standards for primary food products, which constitute the

bulk of the Indian diet.

The Standards of Weights and Measures Act, 1976 and Standards of Weights and

Measures (Packaged Commodities) Rules, 1977 are legislative measures designed to

establish fair trade practices with respect to packaged commodities. The rules prescribe

that the basic rights of consumers regarding vital information about the nature of the



commodity, the name and address of the manufacturer, the net quantity, date of

manufacture, and sale price are provided on the label.

Fruit Products Order (FPO), 1995 contains specifications and quality control

requirements on the production and marketing of processed fruits and vegetables,

sweetened aerated water, vinegar, and synthetic syrups. All such processing units are

required to obtain a license under the FPO and periodic inspections are carried out.

TECHNOLOGY ENVIRONMENT

One of the most dramatic forces shaping people‟s lives is technology. Below are some of the

technological advancements in the packaged juices industry.

Aseptic Processing and Packaging is considered as the single most important innovation for

food products in the last half-century; it involves producing shelf-stable products by sterilizing

the product and the packaging material or container separately and filling in a sterile

environment.

High Pressure Technology can quickly pasteurize, or in some case sterilize, food products with

little or no heat treatment. This results in products that have a good natural taste and texture,

while retaining those nutritional factors that would otherwise be degraded by heat e.g. vitamins.

SOCIO-CULTURAL ENVIRONMENT

India is a land of diversities, which is reflected not just in the topography but also in languages,

cultures as well as religious beliefs. Indian culture has always stressed on healthy living. So,

Indian consumers like fresh foods but due to prevailing unhygienic conditions at juice vendors,

packaged juices are preferred over extracted juices. Since Indians like to see the product they

would be consuming beforehand, there is a growing preference for PET bottles over cartons.

Due to the community structure being close-knit, buying behaviour is influenced by family,

friends and relatives at large. Opinion leaders in the family, usually elders having inclination

towards natural drinks, influence the choices of the rest of the family. Consumers also cited that

they get added options to offer to guests apart from tea, coffee and aerated drinks.



INTEGRATED MARKETING COMMUNICATIONS MIX

I. PRODUCT

Tropicana uses the best in fruit to give you great – tasting, nutritious juice and juice-

based beverages. It includes the following benefits: Made with fresh oranges – Tropicana pure premium is 100% juice that comes

from the best real fresh juices. Devoid of artificial colour, preservatives and sugar.

Available flavors - Apple, Mixed Fruit, Orange, Grape, mango, pineapple, guava,

litchi

Packaging – 1 litre and 200 ml

Naturally nutritious- with 100% vitamin C in every 8 ounce glass, Tropicana pure

premium is something good you can do for yourself every day. And with no

water, sugar or preservatives added, you don‟t have to worry about anything but

the goodness.

A good source of folic acid – folic acid helps to reduce the risk of certain birth

defects of the brain or spinal cord.

Contains potassium – that helps to control the balance of fluid in our body and

may help in maintaining a healthy blood pressure.

PRODUCT LINE, DEPTH AND WIDTH



II. PRICE

A 1-litre Tropicana orange juice pack, for example, is priced at Rs 72.

A 200ml tetra pack is priced Rs 15 to 18 depending upon the flavour.

III. PLACE

1. Kirana stores

2. Hypermarkets

3. Bars and Restaurants

4. Hotels.

IV. PROMOTION

1. ADVERTISING

PRINT ADVERTISEMENTS

Tropicana followed an aggressive print media campaign which saw print

advertisements in extremely large number of national and regional language

newspapers.

TELEVISION ADVERTISEMENTS

On launch in 2008, Tropicana 100% television campaign comprised of innovative

advertisements emphasising on brand's strength as a complete fruit juice devoid of

any artificial colour, preservatives and sugar. The advertisements enticed customers

with an option of a high pulp content juice and had advertisements featuring half cut

oranges being joined to make full oranges etc. connoting the 100 % complete pulp

juice.

In 2010 the new campaign focuses on Tropicana 100% fruit juice as an integral part

of a complete breakfast. The television commercial communicates that „Let‟s MakeBreakfast 100%‟ which reinforces the wonders of a warm, nutritious and fulfilling

breakfast.



VIRAL MARKETING

Tropicana has allowed all its TV advertisements to be posted on YouTube to take

advantage of the growing viewership of internet savvy young consumers.

PACKAGING

The brand has revamped its Back of Pack Graphics to highlight the nutritional benefit

that Tropicana 100% Juices bring to one‟s Rushed Breakfast.

SALES PROMOTION

Its recent sampling exercise included an interactive quiz reaching out to 200,000

students from 150 schools in Delhi.

2. PUBLIC RELATIONS AND PUBLICITY

In 2008, the company had launched a Doctor Detailing campaign under which 1,500

doctors in metros and tier-I cities took part as part of its promotion programme to

highlight the health benefits of the brand.

To target the people who feel health as “The Most Important” factor to purchase a drink,

Tropicana took on the health awareness and from now on “The Indian Medical

Association (IMA)” will endorse PepsiCo‟s Tropicana fruit juices - “partnership for

health”

3. COMMUNITY RELATIONS

a) Tropicana was the official partner of the Yuvraj Singh Foundation and Make A Wish

Foundation (MAWF) Event in 2009 which saw the wishes of 20 under-privileged

kids being fulfilled by Indian and Sri Lankan cricketers. Tropicana gave away juice

packs to all the kids present at the event.

b) In India, the PepsiCo Foundation is helping to change the lives of an increasing

number of people through our support of organizations that are focused on building



sustainable water practices and domestic solid waste management, including the

Energy and Resources Institute and Exnora International in India.

4. DIRECT AND INTERACTIVE MARKETING

The Tropicana nutrition institute serves as an interactive medium between consumers and

Tropicana where consumers can clarify their doubts as well as get to know more about

the product. This website aims at becoming a rich resource on fruit, vegetable and juice

nutrition.

5. WORD-OF-MOUTH MARKETING

Pepsi„s Tropicana has tied up with equestrian sports and polo clubs to build bridges with

the well-heeled young adults.

6. PERSONAL SELLING

PepsiCo has launched health conscious cafe stalls to state that it is a healthy food

company. The cafe will offer a range of choices for consumers recipes like Quaker

muffins, Tropicana 100% smoothies, Nimbooz, coconut mint mocktails, all of which are

served at the cafe as a health alternative.



SWOT ANALYSIS

MARKET ANALYSISThe Indian food market is poised to grow from US$ 155 billion in 2005 to US$ 310 billion by

2015 and US$ 344 billion in 2025 - at an approximate compounded annual growth rate of 4.1%.

The development of the food industry in India stems from the consistently increasing agricultural

output. With the second largest global arable land area, India is one of the key food producing

countries in the world, second only to China. Currently, India ranks second in fruit production

and third in vegetable production in the world.



Food processing is a large sector that covers activities such as agriculture, horticulture,

plantation, animal husbandry and fisheries. However Government of India has defined the

following segments within the Food Processing industry: Dairy, Fruits and Vegetable

Processing; Grain Processing; Meat and Poultry Processing; Fisheries; Consumer foods

including packaged foods and beverages. The share of organised sector for Packaged Fruit

Juices stands at 77%.

There are 6 major players and their market share is shown below:

FINANCES OF TROPICANA

Real, 57%Tropicana,

25%

Leh Berry,

4%

Others, 14%

Market Share of players in

Packaged Fruits Juices Market

0

100

200

300

400

500

600

700

800

900

2008 2009 2010

pepsi

trop



The above graph shows the net sales of Pepsico and the related share of Tropicana.

Above graph shows the % increase in sales of pepsi( blue bar ) and Tropicana ( red bar ).

It is quite evident that % sales of Tropicana have increased more than the overall sales of

PepsiCo.

2628

31

0

5

10

15

20

25

30

35

2008 2009 2010

grth_pp

tp



PORTER‟S FIVE FORCE ANALYSIS

COMPETITORS ANALYSIS

Strengths and Weakness

The below table shows the results of a survey carried out by us that asked consumers to rate the

players in the packaged juices market on 4 attributes.

Sample Size: 44

Competitor ProductQuality CustomerAwareness ProductAvailability AssistanceFromSelling

Real E E E G

Tropicana G E E G

Leh Berry G F F F

Fresh Gold F P F F

Safal F F F P

Xs F P P P

E – Excellent, G – Good, F – Fair, P - Poor



From the above table it is evident that the Real turns out to be well known and respected for

producing high quality products sold by good sales force. Tropicana is also good across the

board excellent in customer awareness and product availability. Fresh Gold is weak when it

comes to customer awareness and thus is vulnerable to attack from other competitors. Safal

needs to devise a good marketing strategy for its distributors as it is now famous among the staff

selling its product. Xs seems to be in a bad shape when talking customer awareness, availability

and selling staff. Xs needs to be aggressively marketed if it needs to stay in the competition.

The below table lists parameters like Share of Mind and Share of Heart, which are calculated as

per responses received.

Competitor Share of Mind Share of Heart

Real 54.5 40.9

Tropicana 25 34.1

Leh Berry 9.1 11.4

Fresh Gold 4.5 4.5

Safal 6.8 4.5

Xs 0 2.3

Others 0 2.3

Apart from the above parameters, questions like “Name the brand which you see "the most on

display" when you go to buy Packaged Juices?” were also put forward which entailed responsesin favour of Tropicana(16), followed by Real(15), Leh Berry(5) and Safal(5). Also, for another

question, “For which of the below brands do you encounter most advertisements/promotions?”

we got responses in favour of Tropicana (19) and Real (15).

MAJOR MARKET PLAYERS: PROFILES AND STRATEGIES

Dabur India Ltd. (Real)

Dabur India Limited is the fourth largest FMCG Company in India with Revenues of ` 3416

Crore & Market Capitalisation of over ` 16,000 Crore. Building on a legacy of quality and

experience of over 125 years, Dabur operates in key consumer products categories like Hair

Care, Oral Care, Health Care, Skin Care, and Home Care & Foods. Dabur has 17 ultra-modern

manufacturing units spread around the globe with Products marketed in over 60 countries.

Dabur enjoys wide and deep market penetration with 50 C&F agents, more than 5000

where Share of Mind is calculated

by asking questions like, “Name

the first brand that comes to your

mind when you hear Packaged

Juices?”

and Share of Heart is calculated

by asking question like, “Name the

brand which you would prefer to



distributors and over 2.8 million retail outlets all over India. Some of the marketing strategies

actively adopted by Dabur are as follows:

- Dabur has forayed into the fruit drink segment with the launch of Real Twist.

Segmentation of product categories like 'Real Twist' in the fruit drinks segment, 'Activ'

and 'Coolers' has widened its appeal in the market

- Its flagship brand 'Real' offers consumers 11 variants like Orange, Mango, Pineapple,

Mixed Fruit, Grape, Guava, Tomato, Litchi, Cranberry, Mausambi and now Apple.

- Enhancing distribution and visibility: In line with the changing retail scenario and the

new profile of 'on-the-go' consumers, Dabur Foods has scaled up its presence in the

Indian market by making its brands available at an arm's length. The company focuses on

driving distribution in smaller towns and cities through introduction of innovative

channels

- Building capacities across supply chains: Dabur, at all times, ensures that the freshest

product reaches the consumer.

- Knowledge centre for all fruit product categories: The company has built a strong R&D

knowledge database providing information on all fruits and vegetables, processing &

packaging technology while building in house competencies to prepare their own special

blends.

Ladakh Foods (Leh Berry)

The Indage Group of Companies is known by its major concern - Champagne Indage Limited

(CIL), incorporated in 1985. Consequent to merger with its sister company Champagne

Vineyards Limited (CVL), CIL is the leading manufacturer and seller of wine in India today.

With this great aim in mind, CIL came out with the first offering from the rich Seabuckthorn

basket. A range of fresh juices and nectars under the umbrella brand name - LEH BERRY

marked the beginning of this great venture that includes 8 Superjuice variants (Seabuckthorn,Mixed Fruit, Orange, Mango, Guava Blackcurrant, Litchi and Peach). Some of the marketing

strategies followed by Leh Berry Juices are as follows:

- Leh Berry has also launched jam and sauce through 20,000 retail outlets

- It has tied-up with Godrej Food for manufacturing and packaging Leh Berry fruit juice



- Ladakh Foods has also launched Leh Berry jam in 20 ml sachets priced at Rs 2 and Leh

Berry sauce in 12 gm sachet priced at Re 1 which will cater mainly to the youth.

- It has tied-up with railway canteens, canteen store departments and the Indian Navy to

promote its products.

CONSUMER BEHAVIOUR: SURVEY ANALYSIS

OBJECTIVE

To analyse the consumers‟ behaviour in the purchase of packaged juices and draw implications

for marketing decisions.

INTRODUCTIONPackaged drinks are one of the quintessential segments in the FMCG Category and cover a wide

variety in India .They can be further bifurcated into packaged juices, butter milk, pro-biotic

drinks and citrus beverages etc. We have chosen packaged juices among them.

Packaged Juices are produced by extraction of juices from fruits with addition of flavours,

sweeteners and preservatives.

Packaged Juice is a fast growing market in India and is popular for various reasons, health being

the more prominent among them.

METHODOLOGY

We selected a varied sample of consumers on the basis of age, sex, income, profession etc.

We circulated questionaires, trying to know the reasons for their purchase of the selected

product, how they came to know about it, the stages in the purchase process and if there was any

post purchase dissonance.

Also, we have substantially tried to capture all the waves of transformation that facilitate the

consumer in buying the product. Based on the survey, we have drawn marketing implications.



OBSERVATIONS

PARTICULARS CONSUMERCATEGORY I

CONSUMERCATEGORY II

CONSUMERCATEGORY III

Age 30-44 yrs. 45-60 yrs. 15-29 yrs.

FINDINGS

What are the triggersof purchase?

- Natural soundshealthier- Packaging gives ahealthy connotation

- Hygiene Concerns- Taste- Substitute for fruitsand fresh fruit juices- Paucity of time

- Taste- Health supplementafter work-out

What were the stagesin the purchaseprocesses?

- Information Search – Other stores andAdvertisements- Evaluation of

alternatives Citrus Drinks, Pro-biotic Drinks

- Information Search – Samples distributedby freelancers- Evaluation of

alternatives – – Mother Dairy Milk &Butter Milk

- Information Search - Print Media,Internet, word-of-mouth- Evaluation of

alternatives – EnergyDrinks like Gatorade,Red Bull etc.

What inputs weresought in each of these stages?

- Pricing- Nutritional Facts- Flavours

- Nutritional Facts- Pricing

- NutritionalInformation- Flavours

Approximately howmuch time was takenin each stage?

Considerably less,since the product wasimpulsively bought atthe store.

2-3 days approx. (intotal)

Immediate

Was there any post

purchase dissonance?

No The market in the

country isn‟t maturefor fresh juices andthe ones availablearen‟t 100% pure.

Not much variety in

terms of flavours.

RESULTS AND IMPLICATIONS

Consumer Behaviour is influenced a variety of factors. We have categorised the responses from

our study under following heads:

CULTURAL FACTORS: Indian culture has always stressed on healthy living. So, Indian

consumers like fresh foods but due to prevailing unhygienic conditions at juice vendors

packaged juices are preferred over extracted juices. Since Indians like to see the product they

would be consuming beforehand, there is a growing preference for PET bottles over cartons.



SOCIAL FACTORS: Due to the community structure being close-knit, buying behaviour is

influenced by family, friends and relatives at large. Opinion leaders in the family, usually elders

having inclination towards natural drinks, influence the choices of the rest of the family.

Consumers also cited that they get added options to offer to guests apart from tea, coffee and

aerated drinks.

PERSONAL FACTORS: As age increases, consumers opt for healthier options while the

young consumer attaches more importance towards flavour and trends among peers. No

conclusive difference was found between buying behaviour between males and females. Due to

the paucity of time consumers prefer to buy packaged juices because of their convenience.

PSYCHOLOGICAL FACTORS: There is a perception among consumers that packaged juice

is more hygienic, healthy, good substitute for fruits and safer than carbonated drinks due to the

recent reports of them containing toxins and pesticides. A certain section of consumers had a

different perception that the packaged juices don‟t offer real vitamins as they contain artificial

supplements.

MARKETING STRATEGIESThe marketing strategies adopted by PepsiCo for its Tropicana Juices products are as follows:

- Tropicana has come up with a new orange drink Tropicana Twister, which was pitched

against Coca-Cola's Minute Maid

- Tropicana Twister drink, which has been introduced in returnable glass bottles (RGB).

- Tropicana has come forward with the launch of vegetable-based drinks in the market.

- Tropicana has also introduced various flavours like Tropicana Lychee & Peach Twirl

juice drinks.



ANSOFF’S MARKET EXPANSION

COMPETITIVE STRATEGIESCHOSEN CAMPAINGN: Let’s make breakfast 100%

The new Tropicana 100% juice communication, aims to unlock the juice category in India, by

positioning it as a critical constituent of the breakfast menu. With the growing lifestyle trend of

„rushed breakfast‟, nutrition often tends to get compromised. The new campaign intr oduces the

powerful functional benefit of nine natural fruit nutrients in the juice.

I. OBJECTIVES OF THE CAMPAIGN

1. Fortify Tropicana as a brand that is all about nutrition.

2. Aims to educate consumers about the effect of cutting short breakfast & how Tropicana

with its 9 Fruit nutrients can add back nutrition to one‟s breakfast.

3. Increasing the market share of Tropicana 100% significantly by positioning it as a health

drink.



II. TARGET AUDIENCE

The primary audience in our opinion is the youth and the working class who lead a fast lifestyle

and have rushed breakfasts which do not supply them with the required nutrients.

The secondary audience can be those consumers (in all age groups) who have a health conscious

bent of mind and are willing to supplement their breakfasts with packaged juices.

III. COMMUNICATION TOOLS USED

TELEVISION MEDIA

The campaign has mainly revolved around the innovative television commercial launched

by Tropicana in April 2010. The TVC takes a page out of the daily life of a typical urban

household, depicting a young couple rushing through breakfast, only to find food on the

plate shrinking dramatically. This baffles the man but his smile returns when his wife

adds a glassful of Tropicana 100 per cent juice to the breakfast. There is a clear brand

re positioning done through this Ad. Tropicana‟s “Har Din 100%” tagline changed to

“Let‟s make Breakfast 100%”.

Creative Execution Analysis: The ad proposes that the intake of food for workingpeople is shrinking, which makes the proposition clear and that Tropicana has nine

ingredients that make up for it.

However we feel that not enough emphasis was given to the nutrients aspect of Tropicana

100% which takes away a little credibility from the advertisement. Our suggestion is that

visually dancing nutrients around the product like in other health drink advertisements

make a deeper impression on a consumers mind rather than just plain words.

PRINT ADVERTISEMENTS

Tropicana followed an aggressive Print media campaign which saw advertisements being

published in many national as well as large number of regional language newspapers. A



side objective of the campaign was to increase the overall visibility of the Tropicana

brand in the increasingly important Tier-I and Tier-II cities.

Creative Execution Analysis: This campaign also aimed to create awareness and

educate consumers about the effect of cutting short breakfast, and how Tropicana can add

nutrition to breakfast. However, we feel that the print advertisements were not creatively

executed, lacking in visual appeal and any unique idea in them.

PUBLIC RELATIONS

Tropicana 100% campaign focussed on getting an endorsement from the Indian Medical

Association (IMA) to get a stamp of credibility to its health drink status while it

aggressively pursued a Doctor Detailing Program for the first time in India.

Creative execution Analysis: The endorsement by IMA of a commercial brand is a first

in India, and stamping of its seal on the packaging of the product reinforces trust in the

product. This was however controversial and endorsement will be withdrawn next year.

RECOMMENDATIONSSome of our recommendations as analysed from the study, are listed below:

- There is a market to introduce products in different pack sizes and price points as

currently almost all products are available in tetra packs.

- To explore new markets in, the players need to pay more emphasis on college canteen,

BPOs, service sector, religious institutions and schools.

- The cut throat competition in the packaged juices is rising as more players coming to

market.

- The competitors need to constantly revamp its strategies and new means to attract the

niche segment.

- There is a great need for Corporate Governance to be implemented in the juices market.



MARKETING MIX SUGGESTIONS

1. PRODUCT – Realization!

Diversification of products can be done in terms of addition of new flavours like custard

apple, chickoo, jamun, tender coconut. Also, products in different pack sizes and price

points can be introduced.

2. PRICE – Attention needed!

The concept of mixed co-branding can be used to introduce bundle of packages at a price

lower than the combined price of the individual packs which can help increase sales.

3. PLACE – Focus on the presence of brand in public forums!

Tropicana should sponsor events i.e. Management meets in B-schools.

4. PROMOTION – Great success achieved!

REFERENCES

Census India 2001. (n.d.). Retrieved from Census India: http://www.censusindia.gov.in/

Food & Beverage News – The Profile. (n.d.). Retrieved from FnBnews.com: http://www.fnbnews.com/

Food inflation down to single digit at 9.67 pc. (n.d.). Retrieved from IndiaReport:

http://www.indiareport.com

Food Safety and Standards Act – raising the bar for regulations . (n.d.). Retrieved from Business Line:

http://www.thehindubusinessline.com

FSSA to be implemented by December 2010. (n.d.). Retrieved from FnBnews.com:

http://www.fnbnews.com

Group. (n.d.). Market Research on Competition in Packaged Juices Market . Retrieved from bit.ly:

http://bit.ly/bXoniS

http://www.censusindia.gov.in/. (n.d.).

http://www.fnbnews.com. (n.d.).

India Food Processing Industry. (n.d.). Retrieved from OSEC: http://www.osec.ch

Tata Strategic: Health & Wellness Foods market in India to potentially reach Rs. 55,000 crore by 2015 at

a CAGR of 33%. (n.d.). Retrieved from The Tata Strategic Management Group : http://www.tsmg.com/

tropicana final report by group 8

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