DABUR REAL FRUIT JUICE

C010 VASUDHA CHAUDHARY C020 AKANKSHA HIWARALE C032 MAYA KRİSHNAMURTY

C042 NEHA PAHARIA C052 ROHAN SHAH C063 VISHAL VARADHARAJAN
How did the name “Dabur” Originate ?
 Founded in 1884 by Dr. S.K. Burman, a physician in West Bengal.

 In Bengal, they used to call him Daaktar Burman.

Daktar Burman

 Vision: “Dedicated to the health and well being of every household”

 World’s largest Ayurvedic and Natural Health Care Company

 Turn Over of 7073 Crs in with Net Profit of 914 Crs

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 DABUR PRODUCT RANGE

Home Care

Hair Care

Skin Care

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 Digestives

OTC and Ethical's

Oral Care

Health
Supplement

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 PACKAGED FRUIT JUICE INDUSTRY
Sales Fruit Beverages
Tea Milk Juices Nectar Fruit drinks
Coffee Carbonated Soft Drinks 30%
Bottled Water Fruit Beverages
60%
10%
11% 17%
 Branded fruit beverage market is estimated to be
14% worth 1200 crs
16%
 Projected to grow at CAGR- 15% for next 3 years
21%
21%  This market is subdivided into 3 categories
 Juices – above 85 % pulp content
 Nectars – 20 to 85% pulp content
 Fruit Drink – Less than 20% pulp content

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 JUICE INDUSTRY IN INDIA
 Annual production of 9 million tons of fruits, growing at a rate of 12% per
annum

 Accounts for about 10% of global beverage consumption

Factors affecting demand
 The total market for fruit juices (in India) is 230 million litres which
includes both packed and freshly made fruit juices  Population
 Income and prices
 Majorly dominated by unorganized natural juice market (street vendors)
 Consumption habits and
 As per a survey, 81% of fruit juice consumption in India is unplanned preferences
 Promotional activities
 38% is pure impulse  Seasonality

 60% of fruit juices consumption happened outside the home

 86 % of the fruit juice market is still lying untapped

 Organized juice market witnessing annual growth rate of 30%

 Buyer’s power PORTER’S MODEL Supplier Power
Backwards
integration Differentiated
Undifferetiated 5 Buyer input
4 5
Product independence Forward
3 Beneficial Switching costs 4
integration
Tendency to 2 alternative 3
Buyer size 5
switch 1 2
4 Importance of
0 Supplier size 1
3 quality/cost
Product Financial 0
dispensability muscle 2
1 Player No substitute
Low-cost 0 independence inputs
Price sensitivity
switching
Oligopsony Player Oligopoly
threat Low cost dispensability Threat
Cheap alternative
switching

Threat of substitutes
Distribution
accessible
5 Incumbents Competitor size
Weak brands 5
4 acquiescent Zero sum game Easy to expand
4
Undifferentiate 3 Little IP
Undifferentiate 3
d product 2 involved Hard to exit
d product 2
1
1
Suppliers 0 Little 0
accessible regulations Storage costs Lack of diversity

Scale Similarity of Low cost

Low fixed costs
unimportant players switching
Low cost Number op
Market growth Low fixed cost
switching players
Threat of New Entrants Degree of rivalry
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 REAL FRUIT JUICE
1996 – Real Juice 2002 – Real Activ 2004 – Real Junior 2009 – Real Burst

• Regular juices • Unsweetened • For children below • A range of light

• 14 variants juice for health the age of 6 and refreshing
(seasonal as well as conscious • Available in small beverage
exotic fruits) consumers tetra packs • 4 variants
• 7 variants • 6 variants

 Named such to convey juices were natural  Accolades:

and healthy, contained no preservatives,
and tasted like eating actual fruit)
 14 variants available
 Real at pubs and bars – Mixology
workshop for non-alcoholic beverages
 India’s No.1 Fruit Juice Brand
 Voted as a Super brand
 Real awarded the Reader’s Digest Trusted
Brand Gold Award 2009 in the food and
beverages category

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PROCESS Filling

Pasteurization and packaging

Reconstitution

Concentration

Extraction

Cleaning / grading

Harvesting and collection of fruits

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 MARKET SEGMENTATION
Demographic
Geographic
Age – all age group
Gender – Both Male and Female
Metropolitan/ Urban/ Rural
Income – middle & higher Class
Climatic Conditions
Occupation – student, working and
retired people
Awareness – Health Conscious

Psychographic Behavioral
Personality – No Benefit sought
Life Style – Yes Product usage rate
Value – Yes Brand loyalty
Attitude – Yes Income status

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 TARGET MARKET

PRIMARY MARKET SECONDARY MARKET

 Kids – Fond of Fruit Juice (fond of mango,  Travel Industry

strawberry)
 Airlines, Railways and Local Transport
 Teens – More experimental Systems

 Youth – Experimental and more buying  Recreational

power
 Movie, Theatres, Malls, Amusement Parks.
 Working People
 School, Colleges
 Housewives
 Hotels, Restaurants, Bars etc.
 Elderly people

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 POSITIONING
USPs

Reach
Availability Point of Parity

Packing Quantity
Fruit Juices Pricing
Brand Mantra
Fun Tasty, healthy, Used in Healthy
Variants Nutritious Mock
tails
Real Active
Point of Difference

Thirst Quenching No Preservatives

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CHALLENGES IN JUICE INDUSTRY - INDIA

 Crop farming perceived to be a far more respectable profession than cultivation of

fruits and vegetables

 Fruit cultivation is vulnerable to adverse weather conditions and storage issues

(perishable)

 Risk of high price volatility

 Unorganized juice market

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 COMPETITION

 Major Competitors  Difference for Dabur

 Tropicana (PepsiCo)  For Coca-Cola, PepsiCo, juices was a niche

category
 Minute Maid (Coca-Cola)
 Dabur pinned its entire hopes in beverages
 Saint Juices (Parle-Agro Ltd) on juices

 Safal Fruit Juices (Mother Dairy)

 Ceres fruit juice (Ceres Fruit Juices Pvt. Ltd,

South Africa)

 Other options: Leh Berry and Godrej XS

 Imported brands: Kokuzu and Mogu Mogu

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 MAJOR COMPETITOR ANALYSIS

 Tropicana is a product of vast PEPSI family  Parle Agro has entered the fruit juice
and has a market share of 25% category with the launch of Saint Juice.

 The company sources orange juice  Saint Juice claims to be completely free
concentrates from Brazil. from sugar and added preservatives.

 They come in tetra packs of one litre and  The current positioning of Saint Juice is
PET bottles of 500 ml and one litre. targeting the consumer who is actively
looking for a 100% juice.
 Pepsi also markets Gatorade an energy
drink for the sports personnel which is a
sugar-free Diet Pepsi.

 Pepsi, in association with Unilever have

launched Lipton iced tea

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 MAJOR SUBSTITUTION PRODUCT
ANALYSIS

 Maaza was launched in 1976.
 In 1993, Maaza was acquired by coca cola
India.
 Over the years, Maaza has become
synonymous with mango.
 The drink became a hit with successful
advertisement campaigns like "Taaza
mango, maaza mango,' and 'Botal mein
aam, maaza hain naam.
 Frooti from Parle Agro is the largest
distributed fruit drink with 85% market
share (Tetra Pack)
 It reaches more than 10 lakh retail outlets
in up to class C towns
 Parle’s Agro’s APPY, in 1996 had a market
share of 5% in the fruit drink segment
 In 2003 its new variant-APPY FIZZ as
launched which was a hit.

 It is available in 200 ml , 250 ml , 125 ml

tetra pack and 200 ml tetra pack.

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 MARKET SHARE ANALYSIS

MARKET SHARES AS PER BRANDS MAJOR FLAVORS IN MARKET AND ITS SHARE
Others Sales
8%
Coca-
Cola
5%
Dabur
Pepsico 51%
36%

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 SWOT ANALYSIS
STRENGTHS
WEAKNESS
Strong Brand Name
More health, hygienic consciousness Low capital intensive industry attracts new
entrants.
Rise of tier 2, tier3 & rural areas.
Low quality standards of unrecognized players-
Changing demographics and consumer leading to low confidence in industry
behavior
Demand is seasonal dependent
Huge untapped market

OPPORTUNITIES THREATS

Increasing Organization of retail stores.
Differentiated packaging and variants.
Healthy proposition
Unique offerings
Wider option- from single fruit to mixed fruit.
Product extension- sachets of fruit powder.
Intense competition from Local juice vendors.
Government regulations and pricing policies
Uninterrupted logistics and supply of raw
material.

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HOW DOES DABUR CONTRIBUTE TO BRAND
BUILDING OF REAL?
 Initiation
 Till 1996 branded packaged juices were an alien beverage category
 Consumer preferences - Colas and carbonated soft drinks
 Decision to launch Real seemed wrong initially

 Reasons
 Expensive vis-a-vis soft drinks
 Unbranded alternatives e.g. sugarcane juice, coconut water
 Preservatives

 Gradual increase in demand

 Increased purchasing power
 Convenient breakfast choice
 Health consciousness
 Ease of carrying

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 4 Ps
Product Place

14 Flavors Real is sold through Dabur’s 125 year old

Packaged fruit juice available in different sizes.
No artificial flavors & preservatives.
Loaded with Vitamins like A, C, E.
Amazing taste.
Full of nutrition & power.
distribution network
Through Agents & Stockiest, who further
distribute the products to Retailers
Has franchises that work as separate entities
Available in all retail outlets across every
nook & corner of the country

Price Promotions

Priced in the range of Rs.20(200 ml) to Television Commercials

Rs. 105(1 litre) Outdoors / Hoardings
Pricing of Real is a bit higher than other Magazine & press ads
competitors (Premium pricing). Internet
Sales promotion

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 PROMOTION STRATEGY
 Advertising:
 Bollywood fitness figure Bipasha Basu endorsing Activ juices
 Real-life mother Sonali Bendre in ads for Real juice targeted at moms and kids

 Real Taste Challenge

 Real Fruit ka Juice Offer

 Consumer education programmes to promote nutritional awareness.

 Merchandising Real juices at fruit kiosks

 360 degree campaign to reinforce its real fruit juice image

 The campaign also has touch points at trade centres such as Big Bazaar and Reliance stores.
These touch points engaged children through Flash games in which falling fruit are caught in
a basket.

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INTERNET ADS PRESS ADS
OUTDOORS / HOARDINGS

SALES PROMOTION TVC

Real juice.mp4
 SURVEY RESULTS
Preference of Juices Do people know if it is Dabur product
100% 100%
90% 90%
80% 80%
70% 70%
60% 60%
50% 50%
40% 40%
30% 30%
20% 20%
10% 10%
0% 0%
16-24 25-35 36-45 16-24 25-35 36-45
Packaged Juices 7 5 Yes! 17 9 2
Fresh Fruit Juices 34 18 4 Shit! Is it? 24 14 2

Flavour Preference Consumer Brand Preference

Coolness Quotient
Grape Guava
3% 9% Real
Nimbooz
17% 23%
Orange What
20% rubbish!!
Litchi Not at all.
22% 47% Slice
Absolutely
Mixed Fruit 13%
53%
22% Tropicana
Mango 47%
24%

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 PARAMETER WISE RESULTS
40

35

30

No of People 25

20

15

10

0
Taste Nutrition Variety Price Packing
Outstanding 2 4 1 7
Brilliant 8 9 19 7 14
Good 36 28 34 31 32
Pathetic 0 2 0 3 1
So so 14 17 7 18 6

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 BRIGHT FUTURE OF JUICE INDUSTRY
 Growing demand:
 Change in lifestyle – Juices are being viewed as a holistic solution for improving a person’s health and
increasing immunity against diseases, thus consumers are shifting to non-carbonated drinks

 Favourable demographics – The primary consumers are children, teenagers, young adults and middle-
aged people (which constitutes close to 80% of Indian population)

 Rising disposable income and hygiene concerns are shifting people from unorganized juice vendors to
organized ones.

 Government initiatives:
 At present, as per government policies, up to 100% FDI permitted under the automatic route in the
country’s food infrastructure comprising food parks, cold storage chains and warehousing, among others.

 The same will encourage investment and growth in juice industry.

 Government has also reduced corporate taxes and custom duties on food processing plant and related
equipment, apart from setting up free trade zones and export processing zones for the industry.

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 BRIGHT FUTURE OF JUICE INDUSTRY
 Markets yet to be exploited
 The proportion of packed fruit juices is
just 3.4 Million litres (just over 1% of
market). This translates to just 20 ml per
capital consumption as against
45 litres in Germany, 42.5 litres in
Switzerland and 39 litres in USA
REVENUE GROWTH OF JUICE INDUSTRY IN
 India is the second largest producer of
fruits and largest producer of bananas INDIA
and mangoes providing a huge export
opportunity (presently India contributes
to only 0.8% of global exports)

 Huge scope for exploiting markets of

Tier II and Tier III cities

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 BRAND EQUITY AND AWARENESS
▪ Brand Equity
▪ Brand Extension : Brand introduced known as Réal SUPAFruits. The company introduced two flavours Réal SUPAFruits
Strawberry-Plum and Réal SUPAFruits Goji Berry-Pink Guava
▪ Annual growth in revenues were highest among nectars and exotic variants. Indicates a possible star (as per BCG
model) in the coming future

▪ Brand Awareness
▪ Among survey conducted, Dabur has a low Top of the Mind Recall (41.17%)
▪ Real Activ+ gained traction in sales, especially among health conscious women, after being endorsed by Bipasha
Basu
▪ Sponsored pandals during Durga Puja in Delhi and Kolkata as part of Puja celebrations

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RECOMMENDATIONS

1. Real Juice must try to strengthen its brand association with Dabur.

2. Real must try to counter Tropicana’s increasing market share by packaging the
product more attractively

3. Dabur must try to cater to the adolescent group where it’s losing market share

4. The company must introduce new products including new flavour variants to
maintain appeal.

5. The company must exploit its established distribution and brand recognition to
continue dominating 100% juice and nectars (20-85% juice) market

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