MCI14026_Tetrapacked Fruit Drink

1.1. Introduction:
A beverage is a liquid intended for human consumption.

In addition to their basic function of satisfying thirst, drinks play important roles in human
culture. Common types of drinks include plain water, milk, juices, coffee, tea, and soft drinks. In
addition, alcoholic drinks such as wine, beer, and liquor, which contain the drug ethanol, have
been part of human culture and development for 8,000 years.

Non-alcoholic drinks often signify drinks that would normally contain alcohol, such as beer and
wine, but are made with less than .5 percent alcohol by volume. The category includes drinks
that have undergone an alcohol removal process such as non-alcoholic beers and de-alcoholized
wines (Wikipedia 27-04-2018)

1.2. Types of beverage

The various types of beverage are:

 Alcoholic beverages
 Non-Alcohol beverages
 Soft drinks
 Fruit juice
 Hot beverages
 Other

Beverages are an essential part of today’s generation. The packaged fruit drink industry in India
has a history of 34 years, it all started in 1984 with the launch of Parle Frooti in tetra pack, but
the actual movement in packaged fruit drink industry came in 1996 when Dabur captured the
imagination of young Indian consumer with the launch of Real Fruit juices, a new product in the
India food market. Since that point of time, the industry has been developing gradually and
seeing the entry of various new players with varied flavors and promotional measures to attract
the consumer of the Indian market.

2.1. Target market for the product is

 Refreshment
 Sports
 Health
 Fitness
 Lifestyle
The availability of consumer food products in India has grown significantly since the economic
reforms have taken place1991. The consumers of Indian can now purchase cheese, wine, potato
chips, ketchup, soft drinks, candy bars, breakfast cereals, ice cream, donuts, biscuits, frozen
meats and vegetables, instant noodles, jams and jellies, packaged grains and pulses, soups which
are domestically produced. The availability of fresh produce is seasonal. The retail food sales in
India were approximately $132 billion in the fiscal year 1998 and are growing at 13 percent per
year, according to the report Ministry of Finance. The retail market for fruits and vegetables has
grown at over 20 percent per year in the past few years (Saurabh Chandra Rai & Bharti
Delmonte, 2014-15, Understanding Consumer Behaviour and Promotional Strategies, p28).
Retail sales of subsistence foods such as cereals, bread, pulses and edible oils have started
declining. As incomes have risen, there has been a shift in consumption, from subsistence to
higher value foods.

2.2.CONSUMERS PURCHASING BEHAVIOUR

2.2.1. Need Recognition:

Many Indians are vegetarian by tradition; moreover, many can only afford a vegetarian diet.
Meat may be regularly consumed by less than 30 percent of the Indian population, due to its
higher cost and a predominance of vegetarianism and Hinduism. However, only 20 percent of the
population is strictly vegetarian (Saurabh Chandra Rai & Bharti Delmonte, 2014-15,
Understanding Consumer Behaviour and Promotional Strategies,p35).The statement also
applicable in case of the students of Tezpur University as there are students who are strictly
vegetarian. To support the statement, Patkai Mens’ Hostel can be taken into consideration where
18%-20% of 440 boarders are vegetarian. The domestic help buys vegetables and fresh foods
from the local small grocers and vendors, and other products from a variety of retail stores. The
middle class have diverse purchasing habits. Moreover, consumer need depends on his lifestyle,
health consciousness, habits, More Disposable income etc.

2.2.2. Information Search:

Once a need is recognized, the customer search process begins. This process also influence by
the advertisement, influence by the surrounding etc. From the marketers point of view, they
should put best product to satisfy that want. High information seekers give lot of importance to
the label of the product. They read the contents and everything on the label like name of the
manufacturer, manufacturing date, expiry date etc.

2.2.3. Evaluation of alternatives

There are varieties of option in the hands of consumers. The main players are,
 DABUR REAL:

Real was launched in the year 1996 and the brand has in a niche for itself by producing
only fruit juice in packaged form .i.e.100%preservative free.
Real, which has a market share of 57% comes in nine flavors. They are
• Orange
 • Mango
• Pineapple
• Mix fruit
• Grape
• Guava
• Litchi
• Tomato
• Cranberry
Real Active is 100% fruit juice with no added sugar and is available in following
flavor:
• Orange
• Apple
• Orange- carrot

 GODREJ:

The Godrej industry’s food division produces and market fruit drinks, fruit nectar and
sofit soymilk. Godrej’s brand JUMPIN comes in the following flavor:
• Mango
• Pineapple
• Apple
• Orange

 PEPSI’S TROPICANA:

Tropicana brand fruit juice has a market share of 25% and has registered a double digit
growth. The available flavors of the brand are:

• Orange
• Apple
• Grape
• Cranberry

 LEH BERRY

This is a product from Ladakh Foods. Its first fruit juice in Delhi and it concentrate on
rich segment of society. It has a market share of 4% and is available in a variety of
flavors:

• Pineapple
• Apple
• Mixed fruit
• Orange
• Blackcurrant
 • Mango
• Guava

 PARLE’S FROOTI and APPY:

Frooti was launched back in the year of 1985 and enjoys market dominance with 85% of
market share. Parle’s Agro’s APPY, in 1996 had a market share of 5% in the fruit drink
segment; in 2003 its new product-APPY FIZZ was launched.
So, there are varieties of brands with variety of option. Consumer tries to evaluate these
brands according to their taste, selling price, brand, easy accessibility, habit etc.

2.2.4. Purchase decision:

Today’s consumers are more concerned with overall health and wellness. As a result, there is
significant impact on food and beverage purchases. Many studies have shown that consumers are
as concerned with good health as they are about maintaining a high quality of life. The poorer
segments of the Indian population usually purchase basic staples with the first part of their
paychecks. During the month, the poorer customers will buy whatever fresh foods and consumer
goods they can afford to buy, often filling in at the end of the month with some additional staples
purchased on credit. In India, in all classes, women do most of the shopping and make most of
the food purchase decisions. Most consumers prefer local shops to larger supermarkets because
of proximity, personal attention, and lower prices. Nearly 95 percent of consumers buy fresh
fruits and vegetables from a local market or street vendor. In Tezpur University Students, as well
as teaching and non-teaching staff, mostly prefer to buy fruit from stores prevailing on the
university campus. In addition to that, traditional markets are considered the freshest source for
foods. Indians have a strong preference for freshly prepared foods, and most have a definite
prejudice against packaged, branded, or processed foods, believing them to be lower in flavour
and nutrients. The packaging of imported goods is typically better than that of domestic goods.
Also, India has many regional differences in food tastes and preferences.
“The children are the major determiners (36.2%) in the consumer family in the decision of
buying fruit juice and other drinks. This is followed by the mothers (35.3%) and fathers
(28.4%).” according to the report ‘Mevlüt Gul1, M. Göksel Akpinar, Erdal Dagistan, Hilal
Yilmaz, Sinem Gulcan, 2012, Analyzing Households’ Fruit Juice Consumption and Purchasing
“Tendency: A Case Study from Isparta,p32.”
As per the example given in “Saurabh Chandra Rai & Bharti Delmonte, 2014-15, Understanding
Consumer Behaviour and Promotional Strategies, p40”, residents of Mumbai are more willing to
try new foods than those in other Indian cities. As Mumbai is home to a more progressive and
skilled labour force than other parts of India, many multinational corporations test market of new
products in that city. Consumer spending has grown at an average of more than 11.5% a year for
more than a decade as in most developing nations, a large chunk of Indians consumer
expenditure is on basic necessities, especially food-related items. Hence it is not surprising that
food, beverages and tobacco account for as much as 50% of consumption expenditure in
2011.the remaining 50% related to non-food items is expected to rise, due to the growth of per
capita income.
2.2.5. Post Purchase:
Once a purchase decision is made, a consumer is well experienced about the taste, quality etc. of
the fruit drink. So for future consumption, the consumer can act as an influencer or he will not
shift to other brand easily in the near future.

3.1. Demographic features:

The maximum level of satisfaction towards packed fruit drinks is perceived by the respondents in
the age group 21-30 years. It is proved by the chi-squared test at 1 percent level of significance
(Dr. M. Julias Ceasar & Ms. S. Siva Sundari, 2(4), p78, Consumer Perception on Fruit Drinks: A
Field Survey in Tirunelveli District Tamilnadu, South India). There is a strong probability that
in Tezpur University also, the maximum consumer groups are from that age group. It is found
from the analysis that majority preferred to consuming 250 ml to 600 ml bottle of fruit drinks. It
is also possible in case of Tezpur Univesity. People above 35 years of age consume fresh juices
as compared to others. The minimum spent is Rs.40 by a majority of consumers. Moreover both
male and female spent equally on various fresh fruit juices. As per the report, Gabriel Elepu,
(2016) Segmentation of Processed Fruit Juice Consumers in Urban Uganda 7(1) p92 " in the
US, Health Conscious consumers were mainly older women aged 65 years and above with some
education and low-to-moderate incomes; Convenience Product Users were well-educated men
aged below 44 years and with moderate incomes; Price Conscious consumers were mainly lowly
educated females aged 35-64 years and with low incomes. Reasonable Health-oriented
consumers were mostly professional women aged 40-60 years, and with middle to high incomes,
while Cost-conscious Prevented consumers were older than 60 years, had no children, and had
low to very low incomes.81% of fruit juice consumption in India was made in an unplanned
manner and 38% was pure impulse. The packed fruit juice consumption was a group activity
where just 4% of the population had the fruit juice alone.

4.1. Literature Review:

As per a study conducted by P Raegrt, W Verbeke, F Devieleghere, sales of packaged fruit juices
is rapidly increasing because of its convenience and healthiness. The likelihood of buying fresh
fruit juices is more among educated consumers and among consumers with young children.
Though consumer perception of price, quality and value are considered as pivotal determinants
of consumers buying behaviour and drink choice (bishop 1984, Doyle 1984, Jacoby Olson 1985).
There is increasing demand for healthy and nutritional products as a consequence of consumers
being better educated and more demanding which leads to a need for new products and a more
differentiated food product assortment (Linnerman et al; 1999). Health, nutrition, taste, price
convenience are some of the criteria consumers use to determine.
According to hutching (2013) package and colour of fruit juice influences consumers perception.
The increase in consumption of fruit juice is likely the result of a change in lifestyle, convenient
access to large number of brands options(Albott 1990),as per the study made in China the
consumers are influenced by factors other than income, change in lifestyle play a major role in
structural changes in consumer perception.
 According to (Granato et al 2010), with a rapid pace of life, more consumers will choose to
substitute fresh fruit with more convenient products such as fruit juices. The possible variable
that influence buying behavior of consumers are price of the fresh fruit juices, price of substitute
beverages, household income ,seasonality, brands, demographics, and advertising (Andrew et
al.2008, Pollack 2001,Pollack et al.2013,Brown and Lee1999,Kinnucan et al.2001,Dooley et al
2000). In a study conducted by Pollack et all 2003 U.S.A, the outcome showed that males
consume a larger share of all kinds of fruit juices as compared to females. Those in the age group
of 20 to 29 accounted the larger share of fruit juices and drinks consumption. They also
concluded that there was an obvious difference among the consumers ‘preferences for fruit juices
corresponding to their income.