Executive summary

India is a tropical country and has accorded a favorable reception to thirst quenchers such as fruit juices and aerated drinks. Ready to serve kiwi juice is a beverage prepared from clarified kiwi juice. When chilled the RTS beverage makes for a nutritious and refreshing drink. The nutritive value of real fruit beverages is far greater than that of synthetic products which are being bottled and sold in large quantities throughout the country. If real fruit juices could be substituted for these synthetic preparations it would be a boon to the consumer as well as the fruit grower. India is a market of diversity ! diverse with regards to incomes price points of products culture and preferences and a marketer has to get use to these diverse characteristics of the market. "rinking juice is not a part of our culture. We drink water with our meals but in the West one starts the day with breakfast and a glass of juice. #uice is to a great e$tent considered as a lu$ury not a necessity in our society surely but slowly things are changing mainly in the urban and semi urban areas where the population is getting more and more health conscious and are reali%ing the important nutrient values of fruit and are making them a part of their daily diet. The companies in this Rs. &'' crore industry will have to organi%e various promotional activities from time to time mainly to increase sampling and to educate the consumers about packaged fruit juice that it is as pure and nutritious as fresh juice which is perceived as fresh as it is e$tracted in their presence i.e. actual or assumed. There are two main brands in this segment of non( carbonated drink markets) they are *Real+ from "abur and *Tropicana+ from ,epsi-o. These two players command around .'/ market share in the organised sector. We can observe this industry growing and new players entering the market. In recent times we have seen the entries of some international brands like 0erri 12ustralia3 0allantyne 12ustralia3 and Tipco 1Thailand3 with the intention to strengthen their hold in India and to grow with the market. -& 1-

Company

Shreeji 4nterprises ,vt. 5td will be entering the food processing industry with its first launch i.e. a 6iwi fruit juice. Three of the four investors have full operational responsibilities. S" and S7 are the co(founders and have both entrepreneurial and industrial e$perience. ,0 brings operational management and financial skills to the operation. Shreeji 4nterprises ,vt. 5td has a Strategic 2lliance with the 8ew 9ealand based company 9espri International 5imited to supply the kiwi fruits to India. ,ursuant to our company policy stating :;uality <irst -redit ,rominent: we process our 6iwi#oos with strict production standard healthy 6iwifruit juice. =ur Start up costs listed below has been financed to date by the investment from its owners. <ollowing are the parameters> quality control and sophisticated processing technology we at all time provide our consumers the natural and

Particulars 5and ? site development)1$1 acres @ Rs. 1y3 lakh per acres 0uilding and civil works ,lant and machineries Aiscellaneous <i$ed 2ssets ,reoperative e$penses ,reliminary e$penses Technical know(how and engineering fees -ontingencies @ &'/ Capital Expenditure Aargin money for working capital Project cost

Amount $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ xxx $$$ xxxx

-B 2-

Market Analysis
Market Analysis Summary:
=ne can sense an evolution that the industry has seen with development in the tetra( pack market there also has been a natural progression from drinks to nectars to juices and while traditionally fruit drinks were aimed at children the new brands like *=njus Real and 5ife+ have focused on young adults and professionals. 2lthough fruit drinks focus strongly on out of home consumption the juices and nectars have been concentrating on takeaways or in(home consumption with more choice coming in the tetra( pack market is likely to witness further segmentation. ,ackaged fruit juices are getting recogni%ed as social drinks now with dominant consumption being observed in the company of family and friends. ,eople have started to perceive fruit juices as anytime beverages with consumption being spread more or less evenly between the mid mornings afternoons and evenings. 2nd generation now is as much inclined to sipping fruit juices as colas with teenagers driving the ma$imum trials. If the findings of a usage and attitude study conducted by market research agency Indica Research across &B'' adults in Sec 2 and Sec 0 households in "elhi and Aumbai are anything to go by then its not just champagnes and colas that qualify as social beverages.

-C 3-

The results of the research can be briefly put as follows: 2mong packaged fruit beverages the *awareness to trial ratio of ,epsi-o+s Tropicana juice brand has been rated the highest. Dp to &E/ of the respondents were aware of Tropicana while the brand+s trial stood at &&/ also ./ of the respondents stocked the brand at their homes. =ther parameters where Tropicana edged out competitors included taste health purity and nutrition according to the study Tropicana was also perceiver as *reasonably priced+. The average Indian may have a legendary weakness for mango but when it comes to preference of fruit(based juices) his choices are in tune with international trends. Therefore it is orange juice that is the most preferred fruit juice flavour in India followed by apple sweet orange and mi$ed fruit. The findings indicate that most packaged juice drinking consumers travel abroad on holidays. =ther attributes of branded juice consumers include employment of domestic help ownership of assets and credit cards and health consciousness with .'/ respondents going to aerobic classes or working out at gymnasiums. Dnderstandably therefore awareness and trial levels of packaged juices are higher within the Sec 2 category than among Sec 0 consumers the majority of whom rated these as aspirational. 2wareness levels are similar in both Aumbai and "elhi) more trials are generated by "elhities than their counterparts in Aumbai. The consumers are starting to perceive fruit juices at home. While FF/ of the respondents consumed &( litre packs at home GF/ consumed B''ml packs. The fruit beverage market has more acceptances in 8orthern and Western India which is due to the climatic conditions prevailing there with relations to the rest of the country.

-G 4-

Market Segmentation:
There has been no general acceptance of the product forms in the fruit beverage market. The consumer is basically concerned if it is a fruit juice or synthetically constituted product. ,roduct segmentation therefore should be clearly delimited. Dnder the fruit drinks the first segmentation is between real fruit drinks and synthetic drinks. The real fruit drinks are based on natural fruit pulp or juice. The synthetic drinks are synthetic products with fruit or other flavors. 0road taste preferences could be another way to define the market. The market is at present also segmented on the basis of fruit pulp content. <or the purpose of segmentation on the basis of fruit pulp content. <or the purpose of segmentation on the basis of fruit pulp content market can be segmented as> Fruit juice with pulp content more than .'/. 0rands falling in this category are =njus Real Tropicana etc. Fruit Nectar with pulp content between G'/ to H'/. 5ife and I+s come in this category. Fruit Drinks with pulp content less than G'/. <rooti and #umpin are the popular brands in this category. Segmentation could also be on the basis of the benefits provided to the consumer> =ne benefit could be the nutrition content it gives to the consumer so one market could be the health-conscious se ment. Second benefit is thirst !uenchin so the other segment could be those buying the drink or nectar for satisfying the thirst.

-F 5-

2nother very broad segmentation can be on the type of situation in which the drink or nectar is used: ,eople who are on the move i.e. Outdoor use e.g. those traveling. ,eople who are using it on the breakfast table as a part of their menu i.e. in-house use.

,layers very often choose one or more of such segmentations to differentiate their product and target market and accordingly plan their distribution and promotion patterns.

Market Needs:
-onsumers usually are not going to accept something that doesn+t taste good even if it is good for them or has certain benefits. -ompanies working to bring a new food product to the market have two questionsJdoes it taste good and will consumers buy itK

-L 6-

Market Trends:
Tropical fruits and flavours dominate the market yet some consumers are still hesitant to try unknown e$otic flavours like cherimoya guanabana and carambola. -ompanies have found the best way to introduce e$otics is in combination with familiar flavours. 2 flavour combination that began in the new age F/ to &'/ juice category and has spread to other beverage categories as well as to other products like kiwi strawberry etc. stating that it was a small company that took the risk and won. Smaller companies lead the way as they are more willing to try e$otic flavours even though the larger companies have a larger staff and budget and can afford to search out the trends. The large companies tend to introduce prototypes that are pretty well(tested. They are always interested in the ne$t flavour trend but usually are not the first to debut it. <ortified drinks are also gaining market i.e. the juice is processed and an additional nutritious trait is added to enhance its wholesome value e.g. with additional calcium vitamin - etc. =ne can notice the population in the country mainly in the cities becoming more and more aware with regard to the nutritional aspect of life. This knowledge coupled with the consumer+s desire for a healthier lifestyle has greatly impacted the evolution of juice and juice(based drinks over the last few years.

-E 7-

Industry analysis:
The Rs &'' crore packaged fruit juice market is estimated to be growing at B'/ to BF/ annually with Tropicana and Real holding G'/ market share each. The market can be categori%ed in terms of product content and there are three major product contents available. "rinks> #uice with pulp content less than G'/ #ectars> #uice with pulp content between G' ( .'/ $uices> #uice with pulp content more than .'/

The canned juice market initially covered brands like 82<4" 8oga Aidland Mold -oin and "ruk. These were fruit juices and nectars and not drinks. 0ut they did not make a mark in the market due to reasons such as high price unattractive packaging and lack of right promotion programme. ,arle 2gro+s <rooti a mango drink was introduced in the tetra pack in &N.F and since then has been a leader in its segment. The market has suddenly picked up since &NNG(NF and a few players have emerged as market leaders.

-. 8-

Leading Manufacturers of ruit !everages in India: Company

&. ,arle 2gro

!rand
<rooti

flavours
Aango Muava ,ineapple Strawberry ? =range 2pple =range 8ature Sweet 2pple Mrape ,ineapple Tomato Ai$ed <ruit.

2ppy B. ,epsi-o 5td. Tropicana

Slice C. "abur Real

Aango 5itchi =range ? Muava. Mrape Muava =range ,ineapple Tomato Ai$ed <ruit 5itchi Aango. =range 2pple =range 2pple =range 2pple =range 2pple Aango Aango Aango Red Mrapes 5itchi etc. 2pple Aarketing ,ineapple Aango ,ineapple

Real 2ctive G Modrej <oods #umpin Re Is F. -oca -ola L. 00I. II E. Ooltas .. Pindustan N. P, 2gri &'. 8orth 4ast 2gro Akt. 5td. &&. 6erala Ailk Akt. Aaa%a Tree Top Oolfruit Mrapy P,A84R2A2Ailma

-N 9-

&B. Salstar <oods &C. Aohan Aeakins &G. Aodern <oods &F. 4astern <ruit &L. 82<44" &E. Oadilal Industries 5td. &.. Pimgiri <oods &N. 5akhanpal <oods B'. WIA-= 5td. B&. Tims ,roducts BB. 04- foods BC. The Aaharashtra Inds. "evelopment -orp. 5td.

Regold Mold -oin Rasika 4fil 8afed Oadilal Pimgiri O2<2 Sunsip TIAS R=59 8=M2

Aango 2pple Ai$ed 2pple #uice Aango Muava Aango 5itchi 2pple Aango ,rocessed Muava ,ineapple =range Aango ,ineapple =range Aango ,ineapple =range Aango ,ineapple =range Tropical <ruits 6ioces Aango ,ineapple =range Muava Aango Ai$ed <ruit #uices ,ineapple 2gro.

1The above mentioned list consists of the brands noticeable in metros and as such there are a large number of small canning units scattered all over the country catering to niche markets.3

- &' 10 -

Imports:
With a whole range of product lines opened up for imports over the past &G months these e$porters have now full freedom to e$ploit the huge Indian market. The fruit juice market in India is not yet large enough to justify investing. Today the consumer has got a wide variety to choose from as many foreign food and personal products can come in unrestricted now. The Indian market place has seen a dramatic increase in the range and quality. There is e$pected to be some level of competition in these areas. ;uality will have to improve and manufacturers will have to be more cost effective. ,roliferation of product range is also proving to be a problem for retailers with limited space on their shelves. With Indian producers also improving and enhancing their variety products are jostling for space. -onsumer+s belief in India products too is going up) earlier issues were of durability and poor shelf life. 8ow Indian products have moved up to the ne$t level. This could make it tough for imported products to make a dent in established categories especially where there is a substantial price difference. The comple$ sales ta$ structure In the various states confounds the e$porter of fruit juices for instance it is myriad varying from state to state i.e. -entral sales ta$ in "elhi at .F and in 6erala it is B'/ while Aaharashtra has O2T plus octroi hence fi$ing prices is quite an e$ercise and when you add on these the product becomes e$pensive. Right now sale of imported goods from stores is at the top end and is small percent of store turnovers. 0ut this is e$pected to go up in the years to come. Imports may not really make an impact in the market but could allow legitimacy to some of the products that come through the grey market channel.

- && 11 -

The removal of ;Rs 1;uantitative Restrictions3 is not e$pected to have a major impact on the Rs &'' ! crore organised domestic juice market. This could be on account of the continuance of customs duties at around C'(CF/ ? juices have been coming into India under the open license policy for over B years now. 2s such there has been no change ion the 4$im policy for the juice market. Through industry players are confident that there will not be a deluge of juice brands but they e$pect some more additions in this category mainly because this market is growing and not necessarily as a fallout of 4$im policy. They also believe the stage is not set for any major price restructuring or price war in the Indian juice market as yet as this market is very small still and normally severe price wars happen only when the market becomes big. 0oth 0erri and 0allantyne are among the recent entries in the industry. 0erri fresh juice producer which has L'/ of the 2ustralian domestic market and sells to over C' countries. The company+s products such as 2pple =range dark Mrape and 2pricot juices are now available at supermarkets in the major cities in India. 7et in the year that 0erri has been in the market it has found the response to be good. It has gained about F(L / of the fruit juice market. <or 0erri whose biggest market happens to be 2sia India is still small. 0ut the company is serious about growing it. 0allantyne also as 2ustralian company is also not looking at investment in India at this stage.

- &B 12 -

Problems with imports: The imported products on offer in most stores stocking foreign foods reveal that they are close to their e$piry dates. Aost such products available now come through the grey market. Aost of these products especially those that come from South(4ast 2sian countries are imported by agents who supply to stores. 2s the imported process itself is a long drawn out affair often food products land up on shelves quite close to their e$piry dates and there is also a danger then of agents tampering with e$piry dates and consumers buying stale food. The other problem that retailers face is that since they are dealing with agents there is a problem of returns of products when they are past e$piry dates. Its not an issue when a retailer is dealing with a company as there is a mechanism for accepting returns. 2t times companies are seen to import through their own channels and supply it to the retailers. India is a difficult market mainly because of delays at the docks tariffs and duties on various products bribery and corruption and the lack of a cold chain Qfor horticulture produceR. Things when they arrive do not get straightway into cold storage i.e. the inadequate infrastructure to handle the distribution of fresh produce which causes a rapid deterioration in the quality. Therefore while there could be more brands in the organised juice market the bigger chunk of the market will in all likelihood continue to be with the already e$isting players. <ruits and their derivatives are e$pected to enter India in huge quantities and once the market becomes bigger and volumes come in prices of imported goods are e$pected to come down.

- &C 13 -

Su"stitute:
<ruit juice companies have to face a two level competition i.e. on the first level with the substitutes and the then the players within the industry. The *sip war+ is comprised of the following players with respect to India. %oft "rinks Qboth carbonated and 8on( carbonated soft drinksR

Soft "rinks are divided into carbonated and 8on( carbonated drinks. While -ola lemon and oranges are carbonated drinks mango drinks come 8on( carbonated category. &la'oured (ilk Qenergy 8(#oy etc.R

#ust like fruit drinks <lavoured milk is also positioned on the health platform. -ompanies are trying to project it as a fun drink with added flavours and innovative packaging. (ineral )ater

<ruit drink sellers consider even mineral water as substitute to their offerings. The main assumption is that packs ensure quality delivery. *ther products

Ailk by( products like buttermilk and lassi also serve as major substitutes. They compete in terms of low price as well as easy availability. These drinks are also considered important from the health perspective.

- &G 14 -

#istri"ution patterns:
"istribution network and reach are vital factors for success of the brands in the fruit beverage market. It is mainly the distribution strategy that the companies are focusing upon. The distribution is mainly done through stockist. The companies also have franchises that work as a separate entity. Some companies also have their - ? < agents to give the product to the distributors who further distribute to the retailers. To co(ordinate the things properly with the distributors companies keep their own field force. 0elow the figure shows the many ways the companies in this industry are seen to be operating>

-ompany+s Aanufacturing <acilities

<ranchises

Stockist

2gent

"istributor

Retailer

4nd Dser

- &F 15 -

The urban Indian retail sector has traditionally been structured around three small retail entitiesJthe grocer the general store and the chemist. The rocer stocks non packaged unbranded commodities such as rice flour and pulses as well as branded fast moving consumer goods Q<A-MsR The eneral store stocks only branded packaged <A-Ms. The chemist a part from dispensing pharmaceuticals products sells branded <A-Ms such as personal care products and health foods. "epartmental stores and supermarkets. =thers> 0akeries and confectioners <ruit juiceS tea stallS vending machines Ice(cream parlours 4lectrical and hardware stores and 8on(food boutiques etc.

These retail outfits stock branded <A-Ms that gel with their businesses. Supply chain integration does not quite matter in the case of the small retailer because of the small scale of his operations. Pe normally deals directly with wholesalers with whom he is able to negotiate rates. Retail consolidation Qconsolidation of buying powerR among supermarket operators is unlikely to hurt small retailers simply because it will affect manufacturers directly who will not want to compromise on the distribution reach to offer large volumes to a few big retailers. The small retailers form an integral part of the wide distribution network set up by the large <A-M companies. Aarketers have also found that privateS store brands from supermarkets can prove to be a threat to their own brands and hence desist from encouraging retail consolidation.

- &L 16 -

Consumption and "uying $atterns:

The Indian lifestyle has a traditional predilection for fresh fruits and vegetables or those processed at home. ,eople go in for fresh fruits vending from kiosk fountains which produce instant juices from fresh fruits in the presence of the consumer. =ne reason is the unavailability of hygienically produced and well( preserved products with the use of preservatives. The fact that it is packed denies its freshness. This was also a reason why some of the real but branded fruit juices launched in the late &N.'+s and early &NN'+s did not succeed. Taste is often the secondary consideration in the Indian market for beverages. <ruit juices also lose on roughage which is an important part of fruit nutrition. <ew people know the difference between a juice and nectar. In general the Indian consumers have become health conscious now and are looking for healthy and natural appeti%ing juices. They are moving away from synthetic drinks to natural and wholesome fruit juices. 2t present) ,er capita consumption of juices in India is estimated at a fraction of a litre i.e. B''ml. The consumption of fruit juices in take home packs is estimated at &EBF' mnlt. -onsumers go for convenient and economy products. So small packs are well suited for travelers and children and large take home packs for families and price conscious people. 2vailability in chilled form and brand awareness plays a crucial role in purchase decision.

- &E 17 -

This has implications for the need for availability of the product and in the right form.

While there is no aversion to consumption of fruit beverages by any group the main consumers of this market are people in the age group of C' and below. 7oung adult and teenagers predominantly consume tetra pack drinks.

0rand loyalty is very low as all the products taste the same. 0ut brand loyalty is high in case of kids. Though there is a lot of difference between brand awareness and brand loyalty. brands. =range and other drinks are slowly picking up and breaking the loyalty towards old brands. -onsumers are money conscious where the purchase of fruit -onsumers are not ready to e$plore the market. They do not want to change their taste and are stuck to their old beverages is concern.

- &. 18 -

Main Competitors:
2 host of brands are jostling for thirst space. 8ot just colas but beverages and fruit juices of all hues are adorning shop shelves. <rom bottled iced(tea to branded chhaas fruit(based drinks and flavoured milk beverage makers have gone berserk with product innovation as new variants continue to flood the market. <ruit drinks are high on the swig list in summers as it is part of the health fad sweeping the nation. Pealth conscious consumers are increasingly giving aerated drinks the go by and making a beeline for fruit(based concoctions. Aoreover sporadic controversies about pesticide(infested cola drinks are said to be driving consumers towards fruit(based drinks as a safer alternative. That is why even e$isting players are going all out to pour out new flavours.

#a"ur:
"abur <oods that was set up in &NNE has brands like Pommade 5emonee% and -apsico in its basket. The Rs. CE crore "abur <oods ltd a wholly owned subsidiary of "abur India ltd ahs two brands of juice in the market they are) Real Real 2ctive

<or its +eal brand "abur is focusing on increasing in home consumption by targeting mothers and children. It is priced in the range of Rs. L' to LF 1& liter3 and Rs &F 1B''ml3 e$cept for Muava that is sold in the range to Rs LF to E' and Mrape that is sold for Rs. E' to EF. Its ingredients are water fruit concentrate sugar citric acid and flavours of) Mrape Muava =range ,ineapple tomato Ai$ed <ruit 5itchi and Aango.

- &N 19 -

The +eal Acti'e brand is targeted towards fitness( cra%y young consumers. The drink is positioned on the health plank. It was launched towards the end of B''B. 2t the same time the company plans to position Real 2ctive as its premium juice brand while Real would be targeted at consumers belonging to socio economic categories 0 and - also. It contains only fruit concentrate and water. It is priced at Rs. L. and E'. It is available in the <lavours of) 2pple and orange.

The company was eyeing a turnover of Rs. L' crore in the year B''& ('B which is an increase of nearly F'/. 2ccording to the company it ahs seen a growth of GG/ in the financial year B''&('B as compared to CG/ in B'''( '&. The company plans to increase the advertising spends for the brand by nearly G'/. Today the advertising and marketing budget for the brand by nearly Rs . -rore. The company+s thrust is on increasing in(home consumption therefore they are mainly targeting the mothers and children. Powever the company has restricted its activities in the urban areas only and wishes to fully consolidate markets in the cities before looking at the small towns and rural areas "abur <oods claims to be the market leader in the pure juice category such as ,unjab "elhi Paryana etc.

- B' 20 -

$epsiCo:
The ,epsi operations in India are now the part of the new 2sian division of ,epsi-o 0everages International formed by the merger of ,epsi-ola International Tropicana and Matorade the sports beverage company acquired from ;uaker =ates. 4arlier India was one of the eight business division of the beverage company that used to report to ,epsi-o International in 8ew 7ork directly. 8ow it reports to ,epsi-o 0everage International 2sia in Pong 6ong. ,epsi-o 0everage International is a division of ,epsi-o Inc. This move has been prompted by the need to give greater regional focus to new products like Tropicana and Matorade so that they become a key element of the overall portfolio of the DS beverage major. ,epsi-o Inc. is one of the world+s largest food and beverage companies. The company+s principle businesses include> <rito ! 5ay snacks ,epsi(-ola beverages Matorade sports drinks Tropicana juices ;uaker <oods

,epsi India is already working on a strategy to launch a bevy of Matorade products in the country by the end of this year. These are as follows> Matorade Thirst ;uencher Matorade 8utrition Shake Matorade 4nergy "rink ,ropel <itness Water Matorade 4nergy 0ar

It is also planning to give a major thrust to the juice business through the launch of a host of new products under the Tropicana brand name i.e. on the health and energy platform. ,epsi-o has so far invested around Rs. &'' -rore inn ready to

- B& 21 -

drink juice segment where the company has two brands Tropicana ? Slice. It has &G plants in India producing fruit juices ? B of them work on tetra pack. Tropicana: Tropicana entered the country in &NN.. Tropicana is currently imported in a concentrated form which is later reconstructed at a plant in 0aramati near ,une and vacuum packed into tetra packs after paying an import duty. It covers around &. cities of India. The factor of its success is that it has a tightly controlled distribution system on top of an equally controlled production and this in turn helps it keep its taste constant and the company boasts of it too. Tropicana 0everage -o. recently announced the company+s inclination towards bringing in an entire series of juices and other health drinks from its international portfolio into India in the coming years. The Tropicana brand per se has been positioned on the *health+ platform. ,epsi also plans to give its juice brand ! which has seen many hurdles in the nascent and niche juice market ! a renewed thrust in the coming days. 2 price revision of the brands is also on the anvil. Since B''& Tropicana roped in celebrities in the field of nutrition and health to sell its brands. Dnder which they got renowned people in the field of health to recommend their clients to use their brand. The list of names included the likes of 2njali Aukherji Sabina Sehgal Saikia and Oandana 5uthra who promote the brand positioned as a health drink to their upwardly mobile clientele. 4ven celebrity doctors and pharmacists were included in its list of marketers. Tropicana is also sold through various health clubs like Talwalkars ,ersonal ,oint etc. in Aumbai and "elhi. In the past as a part of its promotional activities the company had conducted a *Tropicana Pealth Run+ in the capital slated for World Pealth "ay which was on 2pril E B''&. Tropicana also runs a programme called *The Tropicana -lub+ under which every time one buys a pack of

- BB 22 -

Tropicana he earns points which he can collect and e$change for a wide range of gifts and also as a member he gets unique offers e$citing gifts and interesting information on keeping fit and looking good. The company is seen to intensify its distribution network with a greater thrust on large institutions. 2part from retail and consumer ! level promotions Tropicana is being promoted through health bulletins and health leaflets. The company intends to continue with its *unconventional+ retail thrust. 2part from the B' ''' to BF ''' outlets across &. cities that Tropicana has a presence in the brand is being placed across gymnasiums fitness centers in F(star hotels coffee shops airlines hospitals offices and health stores. These points of consumption are not consequential in providing high volumes but important from the imagery point of view. Typically non(retail stores have been contributing &B ! &F / of the brands sales. Tropicana evokes a high brand loyalty among health ! conscious middle and upper(middle class segments. The company is seeking to project itself on the health platform and has an ad spend of around B'/ of its sales. The brand+s e$isting tagline of *Taste of Mood Pealth+ has now got an e$tension statement of *"on+t forget the juice+ *Tropicana &''/ pure fruit juice+. Tropicana is packaged in a B'' ml slim pack 1which replaces its BF' ml pack3 and &(liter in a flat pack tetra pack. The company is seen to run promotions in coordination with its other offering like a scheme where &L gm pack of 5ays Aagic Aasala that comes free with a B'' ml pack of Tropicana. Worldwide Tropicana has a host of juice brands under its belt. 0rands like Twister "ole 5oo%a <ruvita and #uice 0owl which could find their way into the Indian market in the coming years. It has decided to make changes in the composition of its juices to suit the Indian taste buds. <or instance reali%ing that Indians like a sweet flavour it decided to launch a separate sweet orange juice product specifically for the Indian market. Since it could not dilute its juice content it decided to substitute part of it with grape juice to make it sweeter. 4ven it+s launched tomato and mi$ed fruit juices have been altered to suit the Indian palate.

- BC 23 -

-urrently in terms of market share Tropicana is believed to trail behind rival Real Q"aburR but is not far behind and also has close to G'/ market share of the estimated Rs &'' crore branded juice market. ,epsi sets the pace for backward integration of Tropicana as a first step towards backward integration for its pure juice business Tropicana is foraying into contact farming of citrus fruits like oranges and 6eanu. ,unjab( #allowal ! has been chosen as the location for the project. The C phase project involving trials nursery and contract farming is being pursued jointly by ,epsi and the ,unjab 2gro 4$port -orporation. Through in its infancy at the moment the project vision however is of about seven years. If successful it would mean &''/ locali%ation of orange juice and it becoming the supply center to other regions. 2 present Tropicana has the following flavours> =range 8ature Sweet 2pple Mrape ,ineapple Tomato Ai$ed <ruit. %lice: ,epsi-o in B''B poised to make deep inroads into juice drink segment in India with seven new variants of its *Slice+ brand. <or the first time in company+s history a *5itchi+ variant of Slice was introduced. 2part from that a guava and =range flavours was also being offered. 2part from B'' ml slim line cartons priced at Rs &' each Slice juice drinks is subsequently made available in BF' ml returnable glass bottles as well. The company invested significantly to bolster the Slice brand in the year B''B and plans to invest heavily through the year while Slice is now available in litchi orange mango and Muava flavours they are e$pected to be soon joined by Slice -ocktails.

- BG 24 -

,epsi-o is sourcing litchis from Au%affarpur guavas from 6arnataka and 2llahabad and mangoes from Ratnagiri. (an ola: Aangola the other fruit(based beverage in the ,epsi-o+s list has a healthy presence in Aaharashtra. ,epsi <oods acquired Aangola originally a brand of "uke+s when it officially stepped into the domestic market while Aangola+s distribution is restricted to Aaharashtra) Slice is available in all markets.

,epsi in association with foods and toiletries major Pindustan 5ever launched 5ipton Iced Tea in returnable glass bottles and ,4T bottles. It has also introduced Airinda in apple and strawberry flavours. ,epsi had earlier said they planned to reduce their dependence on cola and bring it down to G' per cent of total sales in the ne$t few years. ,epsi came on aggressively with its :=ye 0ubbly: campaign. -oca -ola promised consumers a date with 2ishwarya Rai with its :Thanda 2ish -ash: promotion. It also promoted ThumsDp through Aarch and 2pril with its :Pai "umK: campaign featuring 0ollywood actor 2kshay 6umar.

$arle Agro:
,arle 2gro ,rivate 5td is looking at product e$pansion in its various business segments to sustain growth in a sluggish market. In the fruit drink segment where ,arle 2gro has a hugely popular product *Aango <rooti+ it is planning to get into orange and pineapple under the same brand of <rooti. While orange pulp will be imported from 0ra%il pineapple will be sourced from Thailand. 2t the same time it has also embarked on stretching the franchise of its e$isting brandsJ<rooti 2ppy and 0ailley Aineral water. It knows the market and has sustained its brands in spite of the huge unorgani%ed segment. 0esides the

- BF 25 -

company will use its e$isting distribution network to get into the new categories. 2t the moment its only advantage is its distribution strength. ,arle 2gro boasts of a franchise network which few can match. It has two different sets of franchisees for its packs Q&& franchiseesR and mineral water Q&. franchiseesR that manufacture and distribute its brands. It ahs also attempted to venture into direct distribution by engaging special trucks to transport its brands to retail outlets. <or instance in Aumbai it has F' trucks plying between its factories and the outlets. 0esides future plans include introduction of the same direct distribution system for its franchisees across the country. <lushed with funds after selling of its portfolio of soft drink brands Thumps Dp 5imca and Aa%%a and bottling facilities to -oca(-ola the company has enough cash and this is evident since it has not got listed. It also has a massive distribution network to reach its end consumer. 0esides the goodwill of the ,arle brand is a great help in its new ventures. The *fresh n juicy+ <rooti brand is dominating the packaged fruit based drinks category since its launch in &N.F. <rooti Aango which has EF/ market share in tetra packs grew by a modest G/ in B''& according to =RM(Aarg data. 5arger pack si%es Q& literR and more pure juices Qsuch as orange and pineappleR would soon appear under the <rooti brand taking on the e$isting competitors in these flavours and si%es ! brands such as Tropicana Real and =njus. <rooti has always been positioned as a drink for kids but now the company is looking forward to position it as a drink for the youth especially the college going teenagers. This was the basic rationale behind the "igen Oerma -ampaign where a real life down to earth person who like any college student likes to bunk classes is a good sportsman and is a popular figure in the college with whom the teenagers could actually associate themselves with "igen Oerma.

- BL 26 -

,arle 2gro+s product portfolio includes 2ppy <rooti and 8(#oi Qa milk base drink which are priced at Rs &'. 8ew ,4T bottles have been introduced in & liter and F'' ml for mango <rooti at a price of Rs B. and Rs &. respectively. It has recently introduced a green mango flavour in the tetra pack and is also priced at Rs. &'. ,arle 2gro+s has an enormous distribution reach of &' lakh outlets including leading hotels and restaurants eateries super ! markets and paan( shops. Aeanwhile ,arle 2gro is planning to tap the rural markets with its strongest brand <rooti. There are plans to set up a separate distribution in the product itself. In keeping with market sentiments cola biggies -oca -ola and ,epsi too are focusing on innovation in their non(cola portfolio. -oca -ola has launched Aaa%a in pineapple and orange variants in &BF ml tetra packs and large family packs. It recently started a new facility in 0areilly to cater to the growing demand for Aaa%a in north and central India. It is learnt that the company is also set to launch some :niche: products. ,arle 2gro has seen a trend towards fruit(based products. ,arle 2gro spent Rs F crore QRs F' millionR to relaunched its flagship mango drink <rooti with modified packaging and a new ad campaign. It launched a guava drink <rooti Muava in Aumbai and other western regions in LFml packs priced at Rs B.F'. The company is now out with 2ppy <i%% an aerated apple drink in champagne( shaped ,4T bottles. 5aunched in 0angalore it is being rolled out in 6olkata and -hennai in F'' ml and C'' ml packs retailing at Rs BF and Rs &. respectively. The L' million case fruit beverage market never had it so good. =f the Rs E '''( . ''' crore QRs E'(.' billionR drinks market fruit beverages account for Rs F'' crore QRs F billionR growing at BF( C' per cent annually. 5ike most drinks summer accounts for LF per cent of total sales.

- BE 27 -

%odre&:
Modrej <oods 5imited is into the business of manufacturing and selling processed foods and trading of vegetable oil. The company has a number of leading cooking oil brands like -ook5ite Modrej and fruit juice brands like #umpin Is refresh in its product portfolio. The company+s main source of revenue is its oil trading business which makes performance of its business highly dependent on commodity price trends. It has C fruit beverage brands in its product portfolio while #umpin and Is are national brands Refresh is available only in states of D, and Rajasthan. $umpin: #umpin brand is positioned as a fruit drink. It is available in the flavours of orange pineapple apple and mango. #umpin is available in B''ml and the price for all the flavours are Rs &'. ,s: Is is targeted towards adolescents positioned as nectar drink. Is is available in following flavours litchi mango and guava and it is priced at Rs &F for the BF'ml pack. +efresh: Refresh is positioned as a mass market drink but targeted towards adults.

Modrej IndustriesT foods division with its IS fruit juice launched in &NN. in litchi guava and mango flavours. 4$otic blends of Modrej include fruit juice 0erry 0last Qstrawberry(cherry(black currantR and Triple Tickle Qapricot(peach(appleR. The new range is priced at Rs &F for B'' ml and Rs.LF for &''' ml. Modrej <oods :The idea is to come out with e$otic flavours that will combine great taste with attractive packaging for the youth.: With the new offerings he e$pects to see a C'(G' per cent rise in sales.

- B. 28 -

%u&arat Co'operative Milk Marketing ederation: (Amul)

,itching in to pose further competition to the colas is the recent launch of Amul Aasti chhaas by the -ujarat Co-operati'e (ilk (arketin &ederation. 2mul has also added two new variants (( strawberry and mango flavours (( to its milk drink brand 2mul -ool. 2mul are currently selling G'' ''' units of 2mul -ool per day with si$ flavours. That is BC per cent higher than last summer when they had just four flavours. -oming ne$t from the 2mul stable is -ool -afe a coffee drink to be launched in Aumbai "elhi and Mujarat. Retailers however say that while such efforts lead to a temporary revival in offtake sales tend to slacken once the promotions end.

- BN 29 -

$roduct
.iwi fruits are small oval fruits with a thin brown skin soft green flesh and black seeds. They are rich in many Oitamins flavonoids and minerals. In particular they contain a high amount of Oitamin - Qmore than orangesR carotene. Anti *xidant properties of .iwi &ruit It is important to note that kiwi fruits contain a remarkable amount of Oitamin - 4 and 2. Oitamin - is a water(soluble antio$idant that has been proven to protect our body from free radicals dramatically improving the health of individuals who consumed it regularly against all kinds of disease from cardiovascular problems to cancer and obesity. Oitamin 4 has been proven to have similar effects but is fat(soluble and thus is complimentary to Oitamin - in its functions. 6iwi fruits contain both these vitamins in high amount which help protect our body against free radicals from all fronts. 6iwifruit seed are where the most of the Oitamin 4 and dietary fiber are found. .iwi fruits ha'e a hi h fiber content The high content in dietary fiber helps improving diseases such as diabetes by controlling sugar levels and cancer color since fiber binds to to$ic compounds in the colon and helps us e$pel them. <iber has also been proven to reduce cholesterol levels improving the conditions of patients with cardiovascular diseases and lowering the probability of heart attacks. as much potassium as bananas and a good amount of beta(

- C' 30 -

%ummary of .iwifruit /ealth 0enefits 4ating kiwi fruit is clearly a healthy choice particularly useful in these cases> ,revents 2sthma ,revents whee%ing and coughing especially in children ,rotects our "82 from mutations ,rovides a healthy amount of antio$idants and vitamins Pelps prevent colon cancer thanks to a high fiber content

- C& 31 -

.iwi &ruit #utrition Content +esearch

#utrient Content -old .iwifruit &.& ugS&''g <lesh -reen .iwifruit &F. ugS&''g <lesh (ain &unctions Stabili%e O2Inhibit =$idation ? <ree Radicals ,revent TumorImprove <ecunditySlow 2ging Inhibit =$idation4nhance Immunity,articipate In "82 SynthesisSlow 2ging Inhibit Autation ,revent -ancer 2ccelerate -ollagenSynthesis Stop 0leeding 2ccelerate 2mino 2cid AetabolismInhibit =$idation2ctivate <olacin4$pel To$in ,revent Inflammation Inhibit -ancer"eto$ification 2ccelerate Wound -lose 2nti(-holesterin ,rovide 0aby 8eed 2mino 2cid2ccelerate Immunocyte 2ctivity,romote Secretion of Mrowth Pormone ,rolactin and Insulin Inhibit =$idation ,revent -ancer,rotect "82 Inhibit Autation,revent -ardiovascular "iseasesSlow 2ging

Oitamin 4 0earing ,henols

C.'BF mgS&''g Seed

B.EBm gS&''g Seed

Oitamin 2nti(Scurvy 2cid

&CF.NL mgS&''g <lesh

&FG.NF mgS&''g <lesh

-hlorophyl

G.&.F' ugSg ,eel

BBB.F& ugSg ,eel

2rginine

'.'NFC/ <lesh

'.'GLC/ <lesh

Se

C.&E ugS&''g Seed

&.FC ugS&''g Seed

,olysaccharide

G.FL gS&''g ,eel

C.GG gS&''g ,eel

Inhibit =$idation,revent -ancerInhibit AutationRepair ? Shield -ells5ower 0lood MlucoseImprove Immunity2ccelerate "82 SynthesisStrengthen Aarrow Pematopoiesis Inhibit =$idation

,olyphenol

G.FL gS&''g Seed

..GEm gS&''g

- CB 32 -

Seed

-onvergenceStop bleeding2ntiseptic,revent -ardiovascular "iseases Sedation Reduce 0lood ,ressure Improve Se$ <unction

Aonkey ,each 2lkali

'..B / Seed

'..C / Seed

- CC 33 -

$roduct #escription:
This product is actually a mi$ of B' percent pure kiwi juice water and cane sugar. With a strong accurate kiwi flavor this could actually turn out to be a pretty tasty orange juice substitute ! a possible motivation for placing a high( visibility Oitamin - label across the front of the package. 12 .iwifruit $uice in 345ml PET 0ottle
Product code: 6SBF'A5 "escription: 6iwifruit #uice Packin : BG I BF'ml -ross )ei ht: &B.Fkg Approx. 6ty per 35ft &C7: &G'' -artons

This Ready(To("rink variant offers an option to retail operations catering to customers looking for healthy thirst quenching single serve options. The well( designed packaging ensures that it stands out whether it be displayed in normal shelves or walk(in chillers. It is also ideal for foodservice operators looking to offer single serve items on the beverage menu. Inventory control becomes less complicated and 6iwi#oos are definitely a refreshing addition to any beverage menu. Stored at an ambient temperature away from direct sunlight or heat the product has a shelf life of one Q&R year from date of production. It should be consumed immediately upon opening and 6iwi#oos are best served chilled. AR, of this BF' ml bottled drink will be Rs. C'.

- CG 34 -

2) .iwifruit $uice 1.3 liter Concentrate

Product code: 6-BF<<A "escription: 6iwifruit -oncentrate Packin : &B $ &.Blt -ross )ei ht: &L.Fkg Approx. 6ty per 35ft &C7: &''. -artons

This product comes attractively packaged in a &.B 5itre ,4T 0ottle with a recommended dilution rate of =ne Q&R part concentrate to Seven QER parts water. This variant offers value for money and convenience for those with large families or entertains frequently. It is also ideal for the foodservice establishments as it requires minimal storage space and no refrigeration is required allowing them to cater for large functions. Stored at an ambient temperature away from direct sunlight or heat the -oncentrate has a shelf life of one Q&R year from date of production. Dpon opening the product should be kept refrigerated. 6iwi#oos are best served chilled. AR, of this &.B 5t bottled drink will be Rs. &C'.

- CF 35 -

32 .iwifruit $uice "rink in Tetra 0rik Aseptic 1litre and 3 litre %lim line +e Cap

Product code: 6S'&T,S5 "escription: 6iwifruit #uice "rink Packin : &B I &lt &B I Blt -ross )ei ht: &Ckg Approx. 6ty per 35ft &C7: &CF' -artons

This Tetra 0rik variant is DPT processed contains no preservatives and comes with a convenient re(sealable non(drip spout. It is an ideal choice for active families or individuals who want a convenient yet nutritious thirst quencher. With this addition 6iwi#oos has now a wide range of packaging choices to suit both consumers and retailers. <oodservice operators looking for a shelf safe) space saving re(sealable packaging can now opt for this variant. The Tetra 0rik variant has a shelf life of one Q&R year from date of production when stored at ambient temperature. 6eep away from direct sunlight and heat. 6eep refrigerated upon opening. 6iwi#oos taste best when served chilled. AR, of this & lt Tetra pack will be Rs. N' and AR, of B lt Tetra pack will be Rs. &.'. .

- CL 36 -

82 .iwifruit $uice in 4 litre /"PE Tub

Product code: 6S'F<<A "escription: 6iwifruit #uice Packin : BG I Flt -ross )ei ht: BCkg Approx. 6ty per 35ft &C7: .G' -artons

This is a Ready(To("rink variant ideal for foodservice operators catering for large volumes. The product offers a refreshing change to your beverage menu and is a versatile ingredient for concocting cocktails or other non(alcoholic cocktails. Storage is convenient as it requires no refrigeration. The product has a shelf life of one Q&R year from the date of production when stored at ambient temperature away from direct sunlight and heat. The product should be kept refrigerated upon opening. 6iwi#oos are best served chilled. AR, of this F lt P",4 tub will be Rs. G''.

uture $roducts:
2erated 6iwi drinks 6iwi 6ra%e Q6iwi(apple(lemonR Mold 6iwifruit #uice 6iwi wine

- CE 37 -

$ackaging:

#uices can be found in every type of packaging. In early days cans and glass bottles were the only available types of packaging. Today the assortment includes ,4T bottles sports bottles and brick packs. Introduced to reduce shipping weight or to allow small children to pour their own juice ,4T bottles provide another benefit> shatter( resistant properties. #uices found in refrigerator case typically come packed in gable(top cartons. The newest innovation in cartons is the re(closable plastic cap. Some single( serving juice drinks come in sports( top ,4T bottles. Some companies concentrate on proprietary packaging with easy grips or unusual eye(catching shapes. ,ackaging is an important part of promotion today hence the company has decided that 6iwi#oos will be served in transparent ,4T bottles for all the quantities and will carry the company 5ogoS Symbol nutrient value of the juice and the statutory requirements like the ingredients etc.

*ey Success actors:

Processin and Packa in technolo ies used:

State of the art production and packaging technology is a must in this industry. This gives an edge in packaging and ensuring freshness of product besides enhancing the image. "istribution %trate ies9 7o istics and reach in the market:

2 strong distribution network is essential for ensuring availability to fight competition from the other players and also the substitute that have a strong distribution reach. +e ional taste preferences:

-ompanies should take into account the regional taste preferences and build products to serve the same. Oarious concoctions and formulations in the DS and other foreign markets suggest that such strategy is necessary to live the image of the company and remain in the forefront. Product portfolio and 'ariants produced:

Innovations in terms of ethnic flavours and mi$es will pay off. With respect to U6iwi#oosV we must make sure we increase our product baskets as we can+t e$ist with only one flavour and many flavours will also help in leveraging and ensuring that there is optimum utili%ation of resources. %ourcin of raw materials:

Mlobal sourcing strategy will give an edge over other players in terms of both cost and quality advantages.

CN

&lexible and effecti'e marketin mix:

The product mi$ promotional mi$ pricing mi$ and distribution mi$ should be made effective and should be fle$ible in all sense it should help us to combat the primary competitors i.e. players in the fruit beverage market and the substitutes i.e. soft drinks flavoured milk mineral water and unbranded sector. %trate ic alliances and joint 'entures:

Strategic alliances and joint ventures help in gaining competitive advantage in packaging distribution and product formulations.

G'

S+,T Analysis:

Strengt-s:
Innovative flavour hence we are bound to get the attention with proper communication. -ommitted capable and ambitious management. We can gain incentives as we will be a SSI and so we can pass these to capture more market. <le$ibility in our operations as initially we will be confined to few cities so can focus our efforts on the tasks.

+eakness:
=ur distribution set up initially will be weak when compared to the others in the market. 6iwi as a fruit is new in the market and not all people take the risk of e$perimenting with taste. We are entering the market with only one flavour and our ne$t flavour will be out only after si$ months of the first launch. =ur financial constraints with respect to our competitors demand that our resources are used optimally. We will not be able to price our product lower than the others in the market as we have a longer distribution channel and managing this channel also will be an important task. 2lso as our product is not available in India its cost of acquiring increases and therefore it cannot be sold at a low price in the initial stage.

G&

,pportunity:
The market is in a growing stage and fairly small in terms of market share as compared to other thirst quenching and healthy drinks so at this stage our entry is e$pected to be noticed. The market has a presence of only few players and they are not too aggressive in their acts. Aore and more people in the urban areas are getting health conscious and are making fruit juice a part of their daily diet. Pence the market is growing. The government policies are e$pected and are showing trends to encourage the food processing industry. The kiwi fruit can be then cultivated in India in the regions of Pimachal ,radesh Dttranchal ,radesh Sikkim 2runanchal ,radesh Aeghalaya #ammu and 6ashmir and 8ilgiri Pill to cut down the cost of imports of the fruit.

T-reat:
=ur competitors are deep pocketed and they could harm us by getting aggressive in their promotional activities. The competitors have strong brand images in the market because of their other businesses and their presence in the market from an early stage. Indian market has characteristic of serving a wide variety people which is a challenge for all the marketers. =thers can adopt the flavour and the value of a unique flavour could be neutrali%ed soon.

GB

Marketing Strategy: Marketing Summary:

,ursuant to our company policy stating :;uality <irst -redit ,rominent: we process our 6iwi#oos with strict production standard quality control and sophisticated processing technology we at all time provide our consumers the natural and healthy 6iwifruit juice. 6iwi#oos is a new flavour in the market and the company is also new so its marketing budget cannot be limited. So the strategy will be to enter the market with a big bang. "eveloping visibility and brand equity is the key. 6iwi#oos will be advertised in different media with respect to our target market i.e. the women of the house and children who are an important influencing factor in today+s scenario. The teens are the most who like to try out new and different products so even they are an important target audience. In addition to the advertisements which will be used to drive consumer sales 6iwi#oos will leverage a networking campaign with respect to the distributors and sale promotion at the points of purchase i.e. local restaurants gyms etc. to drive commercial sales. 6iwi#oos will be on the shelf in all markets by &Fth <ebruary the company will start supplying its stock by Lth <ebruary. The promotional activities will start from &Bth <ebruary.

Mission:
6iwi#oos mission is to provide the highest quality of fruit juices. We e$ist to attract and maintain customers. When we adhere to this ma$im everything else will fall into place. We will ensure that our products will e$ceed the e$pectations of our customers i.e. we develop a competitively superior value proposition and value( delivery system.

Marketing ,"&ective:
Aaintain positive and steady growth each month.

GC

4$perience an increase in new customers i.e. we have to ensure that our products have a high trial rate which will help us to turn these new customers into long term customers.

Menerate brand equity at the markets we are catering to as well as within the supplier and distribution networks.

inancial ,"&ectives:
Reali%e a C/ increase in the gross profit margins through efficiency gains every year. Reduce the logistic cost associated with product delivery by &'/ by the end of the first five year of operation.

Target Markets:
The women of the house -hildren The teenagers In(home consumption =ut of home consumption

The women of the house and children are an important influencing factor in today+s scenario. 2s the 6iwi#oos contains lots of health benefits the women who care for her family wants her family to be healthy and so are they are targeted. The children are attracted to the beautiful ads and demand for the products as they want to e$periment things just for the sake of it or for their self satisfaction. The teens are the most who like to try out new and different products. Today+s teens are the most health conscious and put in lots of efforts to be healthy. So even they are an important target audience.

GG

:n- home consumption> This group of people buys fruit juices for home consumption and in many case treated as grocery item and is on the shopping list and forms an important part of their diet. <or an average Indian population juice consumption is seen as a lu$ury and is a very urban phenomena as people in the urban are getting more and more health conscious and relating and accepting juices as a healthy social drink. These people are typically sophisticated and are e$posed to the idea of healthy living and are concerned of the well being of their families. Dsually the lady of the house takes the buying decision but she is influenced by her offspring+s many times to the e$tent of brands and flavours. =ne of the strong characteristics features which is common throughout our target audience is that it is considered that juice is fresh only when it is e$tracted on the spot for consumption purpose and it is considered to be better than the packaged ones available in the market. This mind set will have to be changed and the customers will have to be convinced that 6iwi#oos is fresh has all the nourishments intact and is available without the hassle of e$traction for consumption.

*ut of home consumption: This consumption pattern is usually observed in people who feel the need to quench their thirst get refreshed or both. These types of people are important of 6iwi#oos as they are the people who will try the product in small quantity and give us an in road in the home for in home consumption which is our focus area.

GF

If this segment is satisfied then they will start personal use of 6iwi#oos and they will also act as a source of mouth ( to ( mouth publicity which is considered to be one of the best in its kind. This segment is challenging one as there is a dual pattern of consumption which mainly e$ists here i.e. firstly an individual decides if heSshe would like to have a fruit juice or a substitute like carbonated soft drinks water flavoured milk etc. then if heSshe chooses fruit juice they have to chose from the available alternatives then he makes a choice among the available brands with respect to the perceived value and its cost. Such type of consumption is usually seen) =n roads i.e. in front of the general stores railway stations bus stands airports etc. 4ntertainment %ones like amusement parks cinemas parks theaters etc. 4ating(places like restaurants college canteens hotels etc. Working places like offices aerobics classes gymnasiums places of worship etc.

The key to serving this segment would be to be available and visible at points of purchase and including the person to buy with effectively communicating to them that 6iwi#oos is a healthy alternative to satisfy the thirst ensuring taste fun and good health. It is positive that fruit juices are being perceived as anytime beverage. Meneration now is as much inclined to sipping fruit juices as colas with teenagers driving the ma$imum trials.

GL

$ositioning:
6iwi#oos will position itself as a no ! compromise drink where a person does not have to make any compromise with the fun element of having the refresher and the health element and that it is also socially appreciatedS accepted. It will be communicated to the customers that nor do they have to make any compromises and that nor do the producers make any compromise in bringing them 6iwi#oos which is made from fresh kiwi fruit and is produced under a well controlled and a healthy environment. To put our point forward initially we will be using the tag line>WWWWWWWW.and we will be promoting the kiwi flavour as U4$otic 6iwiV.

!rand Logo:

Strategies:
The single objective is to position 6iwi#oos as the natural and healthy 6iwifruit juice in the cities it is served commanding a C'/ market share within F years. The marketing strategy will seek to first create customer awareness regarding product develop the customer base and work towards building customer loyalty. 6iwi#oos seeks to communicate the message that it is the natural and healthy 6iwifruit juice in the market and will help them in not compromising on fun and health and that a customer can have both.

GE

This message will be communicated through a variety of methods with the communication toolsS promotional mi$. The advertisements will be for the purpose of building and registering 6iwi#oos as natural and healthy 6iwifruit juice and not only for our introductory flavour but also for the flavours in future. The ads and the promotional activities will be concentrating only on the cities in which 6iwi#oos is served hence the main weight age will be given to the local media and advertisement on the national level only to the objective making our presence felt.

G.

Marketing Mix:
Aarketing mi$ comprises of approaches to price distribution advertising and promotion. Pricin : ,rice is the marketing mi$ element that produces revenues the others produce costs and it is also one of the most fle$ible elements as it can be changed quickly unlike product features and channel commitments. India is known as a price sensitive market i.e. an Indian customer wants more value at low price. The company+s objectives with regards to pricing is to survive the resistance from the e$isting players ma$imi%e profits and increase its market share in the five cities it is catering. 6iwi#oos+s pricing will be a premium pricing. 2s we are targeting the sec 2 and sec 0 of the middle class and also the 4lite class the price must be affordable to consumers. -onsumers are ready to shell out little e$tra money for the e$otic and classic drink that has many health benefits. 4ven though we are catering only one flavour initially the pricing is close to the competitors pricing. 6iwi#oos will be priced as follows> BF' ml ! Rs.C' '& liter ! Rs. N' &.B liter ! Rs. &C' 'B liter ! Rs. &.' 'F liter ( Rs.G''

GN

"istribution: The distribution or reach factor is a marketing mi$ element that needs to be monitored over a period of time. Dnlike product improvement or positioning strategies that are e$tremely sensitive to consumer preferences and changes distribution inertia could dawn on the company over a period of time. 2n attempt to link distribution with the changing environment will ensure that a great deal of slow damage is averted. 2s consumer behaviour changes competition picks up and the product moves through its life cycle new channels may have to be considered evaluated and chosen. The company Shreeji 4nterprises ,vt. 5td has its 6iwi#oos manufacturing and packaging plant in 8asik. The 6iwi fruits will be imported from 8ew 9ealand based company 9espri International 5imited. The company will be moving in the first phases i.e. the first year we will have an aim of entering only few major cities of India and establishing our brand with 6iwi flavour which will be seen as a launch(pad for our other offerings i.e. flavours. The initial launch will be in the following cities> -hennai 0angalore "elhi Aumbai ,une and 8asik 6olkata

The transportation to the cities will be basically through rail and road depending on cost effectiveness. The inventory level will be decided with respect to the season and in coordination with the distributor and the company representatives. The company will have its representatives positioned at each city that will coordinate with the distributors and the company will interact with the retailer+s inorder to ensure the company first hand information about the product with relation to the customers. There will be F

F'

representatives stationed at each city who will have to make G' calls a day in their respective territories. To keep the channel active and result oriented following initial steps will be taken) They will be given discounts on cash purchases. The goods will be available on credit basis also.

Retailers have to be segmented based on Oolume e$clusiveness complementary products handled and basic requirement of refrigeration facilities which is a must for our product. These factors will be given consideration before incentive schemes are worked out. 6iwi#oos will be marketed through different channels. 2ll different si%es will be available at places where buyer buys products in greater volume) Supermarkets "iscount stores like 0ig 0a%aar 2pna ba%aar etc. Pyper Aall ,etrol pumps -hemists Meneral and -onvenience stores Pealth clubs Mym Mymkhanas etc. 4ntertainment %one> Theaters -inemas ,arks 2musement parks Mame ,arlours etc. Ice(cream ,arlours Potels ? Restaurants 0akeries

In certain areas such stores may not e$ist so in these areas the bottles will be available at specific stores at the discretion of the representatives and distributors these stores should be able to serve the basic idea.

F&

The effectiveness of our channel will only be known when we assess our chosen channel on the following criteria> 2re the customers e$pectation been met by usK 2re the channels serving the targeted segmentsK 2re our intermediaries motivatedK

&uture thou ht on distribution: In our category if we are to become a national brand we will have to have a number of manufacturing plants close to markets to ensure savings on distribution costs which in turn could our brand a competitive edge with regard to the pull at the retailer level through good margins to the retailers. In the plan to go international our 6iwi#oos will be available in #apan <rance Mreece Pong 6ong Aacao and -hina mainland in the future.

FB

Promotional %trate y: The promotional efforts will be on two fronts i.e. on our direct customers and the end consumers. This should ensure 6iwi#oos a push from the distribution and a pull from the customers. 2ll our promotional efforts should serve some basic criteria like the activities should carry a feel good appeal and should enhance emotional attachment of the target with 6iwi#oos. 6iwi#oos will be advertised in cost effective media like newspapers radios hoardings at bus stands and the most important and effective will be through TO advertisements. There will be some cosmetic variations of these advertisements when they are launched across the country. Regional celebrities who appeal to consumers may also be used in advertisements intended for various regions these celebrities will represent our positioning. %ales Promotion: We will be tying up with few other marketers and piggy backing our product on theirs) this is e$pected to give us access to the shopping list and homes of our target. Aarketers that we intend to tie up with will be the ones that have a place in the shopping list of the lady of the house e.g. branded wheat salt fro%en vegetables maga%ines etc. The company will also tie up with supermarkets and other stores which are mainly volume oriented by piggy backing our product on their in(house products. 0oth the above routes will help us in sampling our products to our target customers and in the right manner. 2ttention will be given to the presentation part too ,=, materials store displays stickers etc. will be used to create awareness at the retail outlet. Ad'ertisin :

FC

2dvertising will be e$ercised with a media mi$ which will consist of> ,rint Aedia>

,rint Aedia will be used in the form of news papers of various languages. ,rint media will be mainly used with a purpose of communicating and complimenting our sales promotion schemes to pursue and gives us visibility. 2udiovisuals>

Television as a media will be used to inform the qualities and benefits of 6iwi#oos and give us visibility and build the brand image with the customers. The combinations of TO channels will be used at different intervals. The channels will be selected keeping in mind our target i.e. the lady of the house ! channels showing good TR, ratings for their soaps) the influencers i.e. her offspring ! music movie channels cartoons etc. 2udio>

Radio will be a key element in our media mi$ as it is cost effective and will cover our catering cities precisely. Dnder the brand name we will be running contests sponsoring programme etc. This will help us reach out to our target audience and the influencers. =utdoor>

=utdoor communication will be done to help us get the visibility i.e. with the help of Poardings which will be placed at areas that are prone to traffic jams and at toll Stations. Railway stations in Aumbai will be a good target area for such print media as it also has ma$imum visibility because majority people travel daily by trains to work. In respect of this media the company will be very selective. ,osters> FG

,osters will be created by the company during the events and will be carrying the company logo brand name and the picture and the tag line. ,ublic Relation>

The company will be a part of events andSor will also be organi%ing its own events. The events will be chosen on the core values of community relation and whole family participation. The company will be a part of children and youth involving events like collegeS school festivals meets etc and only use these as a platform to getting closer to their influencers and sample their product at a concession or commission basis. World Wide Web>

We will make our presence felt on the internet by hosting a website for the brand 6iwi#oos which will be named Uwww.kiwijoos.comV which will) The website will be imparting the information about our products quality and values i.e. history of kiwi its cultivation its benefits etc. Run online contests Mive health tips Mive recipes =pinion section ( person is free to e$press his thoughts and feedbacks

The website will be a tool to get closer to our customers and understand them better and will serve an entertainment and utility value.

FF

Time frame: 2n assortment of promotional tools will be used to increase visibility for 6iwi#oos but the promotional activities will be concentrated differently with relation to the seasonal pattern in the country. India is a country with varying climate( winter summer and monsoon Qheavy in west coast between #une and September where as in 4ast coast during mid =ctober to "ecemberR. Though the promotional activities will be continuous throughout the year but the degree and combination will vary. This is intone to the perspective of the target market where it is noticed that soft drinks are consumed less during the winters and the monsoon period. (arketin communication bud et: In the initial period the marketing communication budget approved by the company is Rs. .' lakh to ma$imum of & crore. 5ater when our product portfolio is e$panded i.e. within a span of one and a half years from commencing operation the company will adopt the percentage of sales method i.e. the company plans to spend &F/ of sales on promotional activities.

FL

Marketing .esearc-:
"uring the development of the marketing plans several focus groups will be used to gain insights about our customers. These focus groups will provide us with helpful insight which will compliment the decision making process. 2n additional source of dynamic market research will be the feedback mechanisms with the help of our website Uwww.kiwijoos.comV the contests which the company will be a part of and the primary research which may be done by us or another party if felt the need or in combination. These will be the steps which will be taken to understand the brands position in the customers mind and will serve the purpose of being close to our customer to understand him better. Shreeji 4nterprises ,vt. 5td will work hard in analy%ing and implementing suggestions in order to improve its offerings aw well as to show its commitment to the customer and convey to them that their suggestions are valued. 2n important source of information will also be our competition. The company will keep an eye on the competitor+s activities as they are a constituent of our environment and their activities are bound to affect us. This will be done with the help of the secondary data available and primary data from our customers our channel members and others.

Conclusion:

FE